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Unformatted text preview: elasticity we have both the income effect and substitution effect (make sure you understand this) the firms short run supply curve is segment of Marginal Cost lies above Average veriable costs characteristics of PC, mon comp, monopoly, oligopoly know these! know what causes supply curves shift if the firm is currently producing 0, the cost equals the fixed costs, rent usery ceilings make sure that we can determine which is a price ceiling and floor interest rates? know about sales maximizers economic growth can come from elimination of unemployment, technology improvements, investing in capital kinked demand curve. can you draw one? bonus question, make sure that you can have marginal revenue, demand curves. largest source of revenue for government comes from personal income taxes free rider problem understand...
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- Spring '08