Econ Quiz Notecard

# Econ Quiz Notecard - Perfectly Inelastic – demand never...

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E = Elasticity: ^ = Change: P = Price: D = Demand Total Revenue = P x Q P E of D = % ^ in Qd / % ^ in P Income E of D = % ^ in Qd / % ^ in Income E of Supply = % ^ in Qs / % ^ in P Max Revenue = PaQa + PbQb : A = X-axis B= Y-axis Slope = -A/B : Slope of the Iso Revenue line is Max Point Maximum Utility: MUx / Px = MUy/Py Economic Profit = Total Revenue – Total Cost (Includes opportunity C) MPL / W = mPK / R Long run curve starts at the origin Technical Efficiency -> Minimizing of ATC/AC Allocative efficiency -> P = MC Total Expenditure = %^Q + %^P (usually negative) Minimize cost: MPL / W = MPL1 / W1 Inelastic Demand – Responds somewhat to ^ in P. Between 0 - -1
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Unformatted text preview: Perfectly Inelastic – demand never changes with P Unit Elastic - % ^ in D = to % ^ in Price Elastic Demand - % ^ in D is > then % ^ in P Cooperative equilibrium = both receive something Nash equilibrium = best outcome given what other does Dominant strategy = best outcome regardless of what other does P = MC = MR in SR P = SRMC = SRAC = LRAC When MP = AP, AP is at a maximum Slope of TVC = 0 that = lowest point on MC Curve MC is the supply curve after it passes AVC Slope of TVC = ^ TVC / ^Q = ^ TVC = MC Non rival = one person’s enjoyment doesn’t interfere with others Non excludable = Once it is produced, nobody can be excluded...
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