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9 Cards in this Set
- Front
- Back
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Tax Incidence and Elasticity
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if demand is elastic
pDWL> cDWL |
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Tax Incidence and Inelasticity
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if demand is inelastic
pDWL<cDWL |
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Tariff
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tax on imported goods.
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Quota
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quantity restriction on imported goods.
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Monolopolistic Competition
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One large firm and many small firms.
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Monopoly
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only supplier of a good with no close substitute.
-firm output= market output -firm faces market demand, not horizontal demand. -does not lose all sales if price increases. |
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Monolopy π maximization=
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MR(Q)=MC(Q)
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for Monolopy AR=
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demand
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In Monolopy
When demand is linear |
MR is linear with the same intercept and twice the slope
-demand(AR) P=6-Q MR P=6-2Q |
