# Shared Flashcard Set

## Details

ECN 143:Homework Set 4: Notes
ECN 143:Homework Set 4: Notes
12
Economics
04/03/2016

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