econ equations Flashcards
1
Q
what is the douglas cobb function
A
AL^aK^b
2
Q
what is the MRS formula of the douglas cobb function
A
-bL/aK
3
Q
how does MRS relate to marginal utility
A
MRS = -MUl/MUk
4
Q
what is the budget constraint function
A
PyY+PxX
5
Q
how does MU relate to price
A
MUy/Py = MUx/px
6
Q
APL formula
A
APL = q/L
7
Q
what is the cost function
A
c = wL + rK
8
Q
how do w and r relate to mrts
A
w/r = MPL/MPK = -MRTS
9
Q
what is the elasticity of residual demand
A
Ei = nE - (n-1)Ns
10
Q
how do you find the price of a cournot eq.
A
a+nm/n+1
11
Q
how do you find the q of a cournot eq.
A
a-m/b(n+1)
12
Q
what is a formula for profit involving p,mc and q
A
prof = (P1-MC1)q1
13
Q
what is the stackelberg eq. quantity for a leader
A
q1 = a-m/2b
14
Q
what is the stackelberg eq. quantity for a follower
A
q2 = a-m/4b
15
Q
what is the last dollar rule
A
MPL/w = MPK/r
