Term
How do you calculate Market Equilibrium Price?
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Definition
Set the Demand Function Equal to the Supply Function, and solve for Price.
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Term
How do you calculate Market Equilibrium Quantity?
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Definition
Plug in the calculated market equilibrium price, for the Price variable in either the Demand or Supply Function, and solve for Quantity.
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Term
How do you calculate price elasticity of demand using the algebraic formula?
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Definition
(Slope)*(Price/Quantity Demanded)
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Term
What is the slope of this demand curve?
Q=A-BP
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Definition
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Term
How do you calculate average total cost?
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Definition
Total Cost Divided by Quantity
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Term
How do you calculate minimum average total costs during the Long Run?
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Definition
Price = Minimum Average Total Costs
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Term
In perfect competition, marginal revenue equals what?
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Definition
Equilibrium Price
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Term
How do you calculate Profit Maximizing Quantity?
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Definition
Set Marginal Revenue Equal to Marginal Cost and Solve for Quantity
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Term
How do you calculate Profit Maximizing Quantity in a Perfectly Competitive Market?
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Definition
Set Equilibrium Price Equal to Marginal Cost and Solve for Quantity
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Term
How do you calculate Economic Profit?
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Definition
(Price*Quantity)-(Total Cost)
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Term
Long Run perfect competition guarantees what?
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Definition
Firms use the most efficient methods, as they do not waste resources.
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Price = Minimum Average Total Costs
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Price = Marginal Costs
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Term
What indicates Allocative Efficiency?
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Definition
Price=Marginal Costs
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