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Midterm Review

Midterm Review - • Average Fixed Cost= Fixed...

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Midterm Review #2 Econ 01/04/2008 22:08:00 Chapter 7 Utility o It’s the usefulness o Diminishing Marginal Utility 5 workers 6 hammers o Total Utility Total satisfaction of all units o Marginal Utility Additional satisfaction of a single unit Chapter 8 Explicit Costs o Costs of production Implicit Costs o Opportunity Costs Economic Profits o Revenue minus implicit and explicit costs Normal Profit  o The Cost of Doing Business Profit = total revenue minus total cost o Total Revenue price times quantity Total Cost= Fixed cost plus variable cost
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Unformatted text preview: • Average Fixed Cost= Fixed Cost/Quantity • AVC=Variable Cost/Quantity • ATC=Total Cost/Quantity • ATC=AFC+AVC • VC+FC/Q = TC/Q • MC= Change in Total Cost/Change Quantity =Change in Variable Cost/Change Quantity Chapter 9 • Market Models: o Pure Competition No control over price o Pure Monopolies Total control over price o Monopolistic Competition o Oligopoly o Profit Maximizing Rule ← Chapter 19 • 01/04/2008 22:08:00 ← 01/04/2008 22:08:00 ←...
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