Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
10 Cards in this Set
- Front
- Back
|
Derived Demand |
the demand placed on one good or service as a result of changes in the price for some other related good or service |
|
|
Marginal Product |
The marginal product is the change in output that occurs when one more unit of input (such as a unit of labor) is added. |
|
|
Marginal Revenue Product |
Change in total revenue ___________________________ Change in resource quantity |
|
|
Marginal Resource Cost |
Change in total (resource) cost _________________________________ Change in resource quantity |
|
|
MRP=MRC rule |
Profit is maximized when equal |
|
|
Substitution effect |
a firm will purchase more of a cheaper input whoes realtive price has declined and vise versa. |
|
|
Output Effect |
a firm will produce more when it pruchases more of a unit of input while the price of it falls and vise versa |
|
|
Elasticity of Resource Demand |
%vchange in resource quanitiy demanded ____________________________________________ % change in resource price |
|
|
Least Cost Rule |
MP of labor MP of capital ______________ = _______________ Price of labor Price of capital |
|
|
Profit-Maximizing Combination of resources |
MRP labor MRP capital ____________ = ____________ = 1 P labor P Capital |
