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11 Cards in this Set
- Front
- Back
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price elasticity of demand and supply cross elasticity of demand |
d; percentage change in quantity demanded/percentage change in price s; percentage change is quantity supplied/change in price c.e; percentage quantity demand change of good x/percentage price change of y |
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unit elastic |
=1 |
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inelastic |
<1 |
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elastic |
>1 |
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market power |
lerner index L=(p-mc)/p |
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least cost combination of labor and capital |
MPPl=MPPc or Pl=Pc |
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profit maximizing combination of labor and profit |
Pl=MRPl Pc=MRPc |
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profit maximizing level of outout |
MR=Mc |
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allocative efficiency |
p=mc |
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productive efficiency |
produces at min ATC |
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economic profit |
TR-TC>0 |
