exam two study guide and tips

exam two study guide and tips - production • Know the law...

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If given a table similar to practice exam on units consumed and utility, be able to calculate total and marginal utility (hint: see table for Q2-3, practice exam) Know the law of diminishing marginal utility Know the difference between utility and usefulness If given a table on consumer income and utility similar to practice exam, be able to calculate consumer utility (hint: see table for Q6, practice exam) Understand the factors that make the demand curve slope downward Chapter 8 Know the definitions and difference between explicit and implicit costs, economic and accounting profit, and be able to calculate them if given data Know the difference between short-run and long-run adjustments with respect to a firm’s
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Unformatted text preview: production • Know the law of diminishing returns • Know how to calculate marginal and average product if given a table of labor inputs and units of output Chapter 9 • Know the characteristics of pure competition • Know the relationship between marginal revenue and price • Know what the shape of the short run total cost curve reflects • Be able to estimate profit maximizing output if given a graph relecting total revenue and cost • Know the short run points at which a firm should continue operating, and when should shut down, and when economic profit would be achieved (hint: think about price related to AVC, and the MR:MC relationship)...
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