Concepts_+Midterm+2

Concepts_+Midterm+2 - Marginal cost, average cost and...

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Concepts that you should know for Midterm 2 Ch 6: Production function, labor requirement function, total product function, increasing/decreasing  marginal return to labor, Diminishing total return to labor, Law of diminishing marginal return to labor/capital Isoquant MTRTS lk , MP L , MP K Elasticity of substitution Return to scale Technological progress (three types) Ch 7: Accounting profit and economics profit, opportunity cost Short run and long run cost minimizing problem Isocost line Corner solution, interior solution for cost minimizing problem Effect on change in input price on cost minimizing problem Expansion path (both in long run and short run), inferior input, normal input. Labor demand function, Price elasticity of demand for labor Ch 8: Total cost function 
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Unformatted text preview: Marginal cost, average cost and relation between them Economies of scale, diseconomies of scale Output elasticity of total cost and economies of scale Ch 9: Perfectly competitive market. Profit maximizing output is selected according to P = MC = MR where price is taken from the market by the firm. Shut down price. Short run supply curve of a firm (two situation s when nonsunk fixed cost is zero and when it is not zero), Short run supply curve of the market, Determination of price and quantity in the short run Long run supply curve Determination of equilibrium price and quantity in the long run. Producer surplus Ch 10: Effect of excise duty and subsidy on societal welfare...
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Concepts_+Midterm+2 - Marginal cost, average cost and...

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