3 Micro (Fach) / 0. Formulas (Lektion)
In dieser Lektion befinden sich 10 Karteikarten
Diese Lektion wurde von Janaw55 erstellt.
Diese Lektion ist leider nicht zum lernen freigegeben.
- Inverse Elasticity Rule 1/E + P-MC/P
- Monopoly Mark-up 1/E-1 • MC
- MC for firm TC(Q) – TC(Q-1) VC(Q) – VC(Q-1) dTC/dQ = AVC
- Income Elasticity of Demand dQ / dY • Y / Q Increase in Quantity / Increase in Income
- Price Elasticity of Demand dQ / dP • P / Q Increase in Quantity / Change in Price
- Ration consumer surplus to total surplus CS / TS = ( N / N + 1 )2
- Ration - Producer Surplus to Total Surplus PS / TS = ( 2N / N + 1 )2
- Ration DWL to TS DWL / TS = ( 1 / N + 1 )2 Ratio of DWL to total surplus diminishes at a quadratic rate as number of firms in an industry increase. For Monopoly, DWL is 25% of TS - For 4 firms it declines to 4% of TS
- Ambiguous Effect of 2 Shocks Shocks in same direction: Q ↑ ambiguous effect on P
- Demand is elastic if.. e>1 1% price increase reduces quantity sold by more than 1% Quantity responds more than proportionally to price changes Top of the Demand Curve