Term

Definition
As income goes up, budget spent on food goes down 


Term
Total Revenue (TR)
Average Revenue (AR)
Marginal Revenue (MR)
Demand Elasticities


Definition
(TR)  P*Q
(AR)  P = TR/ Q
(MR)  AR @ twice the slope
Demand Elacticities = €p is (price).. €inc is (INC)
a 1% change in price results in a ____ % change in QD in the ______ dirrection



Term

Definition
 market boundary between 2 or more suppliers are determined by area of:
 procuct cost + transportation costs.. they MUST BE EQUAL
 competition goes up, market power goes down 


Term
Why Estimate a Demand curve? 

Definition
 determine elasticities
 predict future demand prices
 better understand different componets
 to aid in marketing decisions 


Term

Definition
 correlation R is bound between 1 and +1 and tells how negative or positive they are:
 if # is closer to +1, this is STRONGER
 if # is closer to 1, this is WEAKER
.90 is stronger than .89 and < 


Term

Definition
 marketing can be thought of as means by which one firm differentiates its product to service from that of its competeator
 by differentiating the firm has some markey power. they are able to have more control over prices and what they charge.
 a firm seeking this, wants and own price elasticity smaller than infinity and a xprice close to 0 


Term

Definition
 if the r^{2 }is .714, this means that 71% of cariation in Q could be explained in the regression output 


Term

Definition
based on tstat:
< 2 = significantly different than 0
> 2 = not signigicantly different than 0 

