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=ABP  

Definition


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  

