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midterm2reviewtopics - The shut down point for the...

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Review Topics for Midterm 2 Econ 101, Lecture 4, Fall 2009 Professor Korinna K. Hansen Budget constraint Opportunity set Slope of the budget constraint Shifts and rotations of the budget constraint Total utility and marginal utility The law of diminishing marginal utility Indifference curve Marginal rate of Substitution Properties of indifference curves Consumer equilibrium Deriving the demand curve for a good Deriving the Engel curve for a good Substitution effect and income effect Production Product curves: TP, AP, MP Increasing returns to labor Diminishing returns to labor Negative returns to labor Perfect competition Revenue curves: TR, AR, MR Cost curves: TC, TVC, TFC, AC, MC, AVC, AFC Changes in fixed costs Changes in variable costs Short run versus long run Profit maximization for the competitive firm Short run equilibrium for the perfectly competitive firm Profits or losses for the competitive firm The short run supply for the competitive firm
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Unformatted text preview: The shut down point for the competitive firm The long run average cost for the competitive firm Long run equilibrium for the competitive firm Zero economic profits Increasing returns to scale or economies of scale Decreasing returns to scale or diseconomies of scale Inputs, complementary or substitutable The marginal revenue product curve The derived demand for an input The factor substitution effect The output effect Movement along the demand for an input Shifts of the demand for an input Perfectly inelastic supply in the market for land Using more than one inputs in production Partial equilibrium General equilibrium Efficient allocation of resources among firms Efficient distribution of output among households Producing efficient mix of output Allocative efficiency Pareto efficiency or Pareto optimality Sources of Market failure...
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