# Shared Flashcard Set

## Details

ECN 143:Homework Set 5: Notes
ECN 143:Homework Set 5: Notes
6
Economics
04/10/2016

Term
 How do you calculate profit maximizing output?-------------
Definition
 Set Marginal Cost Equal to Marginal Revenue and solve for Quantity-------------
Term
 How do you calculate the price when provided with the marginal revenue, marginal cost, and demand function?-----------
Definition
 1.)Solve for Profit Maximizing Output-----------2.)Insert Profit Maximizing Output as the Output of the Demand Function and solve for price.-----------------
Term
 How do you calculate Economic Profit?------------
Definition
 (Price*Quantity)-(Total Cost)---------------
Term
 When is demand of a monopoly unit elastic?----------------
Definition
 When Marginal Revenue is Equal to Zero------------
Term
 How do you calculate price elasticity of demand using the algebraic formula?---------------
Definition
 (Slope)*(Price/Quantity Demanded)----------------
Term
 Are monopolies ever allocatively efficient?----------------
Definition
 No, because monopolies set price greater than marginal costs, which means the market can never be productively efficient.------------
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