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11 Cards in this Set
- Front
- Back
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 |
|
unit elastic |
=1 |
|
inelastic |
<1 |
|
elastic |
>1 |
|
market power |
lerner index L=(p-mc)/p |
|
least cost combination of labor and capital |
MPPl=MPPc or Pl=Pc |
|
profit maximizing combination of labor and profit |
Pl=MRPl Pc=MRPc |
|
profit maximizing level of outout |
MR=Mc |
|
allocative efficiency |
p=mc |
|
productive efficiency |
produces at min ATC |
|
economic profit |
TR-TC>0 |