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Unformatted text preview: c) Know what is means to be perfectly elastic or inelastic Ch. 5 a) Understand what a budget constraint is b) Identify which points on a graph are affordable c) Know how the budget constraint is affected by a change in a price or income d) Know the definition of marginal utility and diminishing marginal utility Ch. 6 a) Know the definition of marginal product(MP) and diminishing MP b) Know the difference between marginal and average cost c) Know the difference between fixed and variable cost d) Know what a skunk cost is Ch. 7 a) Understand why profit maximization requires MR=MC!! Ch. 15-a) Know what a public good is...
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- Fall '07
- Opportunity Cost