Formulas

Question 1

MC =

Answer 1

MC = derivative of TC

Question 2

MR =

Answer 2

MR = derivative of TR

Question 3

ATC =

Answer 3

ATC = TC/Q

Question 4

How do we find P & Q for a normally priced consumer co-op?

Answer 4

To find P & Q for a normally priced co-op, set D=MC
aka: MVP = MC just like a producer co-op.

Question 5

TR =

Answer 5

TR = P * Q

Question 6

How do we find optimal Q for a consumer IOF?

Answer 6

IOF operates where MR=MC for Q

Question 7

Where does MC = AC?

Answer 7

Where AC is at a minimum MC = AC

Question 8

How do we find the profit of a consumer co-op?

Answer 8

Co-op profit = (MC - AC) *Q

Question 9

Where do we find the maximum member welfare for a consumer co-op?

Answer 9

Max. member welfare where D=MC

Question 10

What is the member welfare of a consumer co-op?

Answer 10

Member welfare = CS+Profit

Question 11

How do we find Q for a single firm co-op that is a producer (buys inputs)?

Answer 11

Q & P @ MC = MVP

Question 12

MPP =

Answer 12

MPP = derivative of TP = derivative of Y

Question 13

MVP =

Answer 13

MVP = MPP*P(y)

Question 14

How do we find the demand equation for X?

Answer 14

MVP = demand equation for X

Question 15

NARP =

Answer 15

NARP = ((P(y)*Y)-FC)/X

Question 16

Where is NARP at a maximum?

Answer 16

NARP is at a maximum where NARP = MVP

Question 17

Is NARP the same for a monopsonist and a co-op?

Answer 17

Yes! NARP is the same for a monopsonist and a co-op, monopsonists just ignore it.

Question 18

Where do we find NARP pricing?

Answer 18

NARP pricing @ NARP = MC

Question 19

How do we find price for a consumer co-op?

Answer 19

MC = D for pricing of a consumer co-op

Question 20

How do we find pricing for a producer co-op?

Answer 20

MC = MVP for pricing of a producer co-op.

Question 21

What is the maximum price a producer coop can offer?

Answer 21

MVP = NARP gives us max NARP and max. pricing.
** at this price there will have to be quotas

Question 22

How do we find P & Q for a monopoly?

Answer 22

Monopoly P & Q:
Q@ MR=MC ,
then up to D for P.

Question 23

How do we find pricing for a competitive producer IOF?

Answer 23

MC = MVP

Question 24

How do we solve a quadratic equation?

Answer 24

Question 25

How do we find pricing for a monopsony?

Answer 25

Monopsony Q: MO = MVP Monopsony P: MC @ Q we just found

Question 26

How do we multiply an individual's demand curve out to an aggregate demand curve?

Answer 26

Must put the equation into the form X=___xz

Question 27

If a co-op is acting as a monopolist, how do we find member welfare?

Answer 27

CS + ((P(m)-MC)*Q) + ((MC-AC)*Q)

Question 28

What is minimum cost pricing (consumer co-op)?

Answer 28

AC = MC

Question 29

What is average cost pricing (consumer co-op)?

Answer 29

D = AC *** P

Question 30

Consumer co-op pricing when members factor patronage into price?

Answer 30

AC = D ** P

Question 31

MVP

Answer 31

MVP = MPP*Py

Question 32

NARP

Answer 32

NARP = ((Py*Y)-FC))/X

Question 33

How do we find the profit/patronage for a producer co-op?

Answer 33

(NARP - MVP)*Q

Question 34

TO = ?

Answer 34

Total Outlay = X * MC = X * P

Question 35

MO

Answer 35

Marginal Outlay = derivative of TO

Question 36

How do we find Q for a producer IOF?

Answer 36

MO = MVP

Question 37

What is NARP pricing for a producer co-op?

Answer 37

NARP = MC

Question 38

What is the demand equation for a producer co-op? Y is output /sold, X is input/bought.

Answer 38

Py=f(y)

Question 39

What is the supply equation for a producer co-op? Y is output/sold, X is input/bought.

Answer 39

Y = f(x) so Y = f(Px, Py)

Question 40

MPP = ?

Answer 40

MPP = derivative of Y MPP = Change in Y / Change in X

Question 41

MVP = ?

Answer 41

MVP = MPP*Py

Question 42

How do we calculate member welfare with a producer co-op?

Answer 42

MW = ((Py * Y)-(Px * X)-FC) + ((Px * X)-Space under dx(X0)) MW = (Py * Y)-(space under dx(X0))-FC

Question 43

How do we find optimal membership for a consumer co-op?

Answer 43

Set D = MC = AC - AC will be lowest - MC won't be higher than AC - D will generally have to be a lot smaller than it currently is you can take that price and put it back into the individual member demand curve - equal to the MVP from the individual production function before you multiply it by 24 to get aggregate demand. Then divide the total quantity you calculated at AC=MC by the individual or small x you calculated and that will tell you optimal membership. Q (optimal membership)/X(individual)= M(ideal membership)

Question 44

Where do we find optimal membership with a producer co-op?

Answer 44

NARP = MVP = S

Question 45

How do we find TR for a producer co-op if we aren't given an equation for it?

Answer 45

TR = P(y) * Q(y)

Question 46

When looking at a producer co-op, what is the Y=...X.... equation referring to?

Answer 46

TP

Question 47

How do we find the profit for a monopsony?

Answer 47

Profit*monopsony* = (P(y) * Y)-(P(x) * X)-FC

Question 48

How do we find P for maximum pricing of a producer co-op?

Answer 48

Plug the Q we found at MVP=NARP back into either MVP or NARP. DO NOT PLUG IT INTO MC!

Question 49

If a co-op is acting as a monopolist, how do we find the total patronage?

Answer 49

((P-MC) * Q) + ((MC-AC) * Q)

Question 50

What is the value of import quota?

Answer 50

(Cost of Production - world price) * imports = import quota value

Question 51

What is the value of production quota?

Answer 51

(Cost of Production - Marginal Cost Price) * production quota = production quota value

Question 52

How do we determine how much will be imported in a quota system?

Answer 52

Imports = Qty D - Production Quota

Question 53

What's the formula for import quota rent?

Answer 53

(Cost of Production - World Price) * (Qty D - Production Quota)

Question 54

What is NARP?

Answer 54

Net Average Revenue Pricing

Question 55

What is MPP?

Answer 55

Marginal Physical Product

Question 56

What is CS?

Answer 56

Consumer Surplus

Question 57

What is an IOF?

Answer 57

Investor Owned Firm