Exam 2 Flashcards
1
Q
MR
A
^TR/^Q
2
Q
ATC
A
TC/Q
3
Q
MC
A
^TC/^Q
4
Q
AFC and AVC
A
TFC/Q and TVC/Q
5
Q
Own Price
A
e>1 ELASTIC
e<1 INELASTIC
e=1 UNIT
6
Q
Income
A
e=+ NORMAL GOOD
e=- INFERIOR GOOD
7
Q
Consumer Surplus
A
MU=P Maximizes (Consumers not Firms)
AREA UNDER DEMAND AND ABOVE PRICE
8
Q
TC and TVC are…
A
Parallel
MC=Slope of TC
9
Q
Profit
A
(P-ATC)*Q
10
Q
Expanding
A
MR>MC
11
Q
Shrink
A
MR
12
Q
Maximized
A
MR=MC
13
Q
Quit if…
A
AVC>P
14
Q
Monopolies want…
A
Q in the elastic region
