Exam 3 Flashcards
(27 cards)
If slope of TR is greater than slope of TC what should you do to outputs?
Increase
If slope of TR is less than slope of TC ehat should you do to outputs?
Decrease
If price is greater than MC what should you do?
Expand
If price is less than MC what should you do?
Contract
If price equals MC what does that mean?
Maxed profits
Profit maxed when?
Slope of TR=Slope of TC, TR and TC are parallel, MR=MC
Wage goes up income effect says what?
Work less
Wage goes up subsitution effect says what?
Work more
Wage goes down income effect says what?
Work more
Wage goes doen substiution effect says what?
Work less
If a natural monopoly were to charge a price equal to marginal cost
The firm would suffer econ losses
Elacticity of labor supply is smaller than labor demand. Who will bear the burden of the tax?
Workers
In a monopoly: marginal cost decreases. How will equil be effected?
Reduce price and increase quanity
Marginal revenue product is
Marginal product mulitplied by marginal revenue
Elasticity of mens labor supply with respect to net wage rate is
Close to zero
Elasitict of womens supply with respect to net wage rate is
Positive
Increase in demand for highly skilled labor will lead to blank in the distribution of labor market earnings
Greater inequality
Increase in supplh of highly skilled labor will blank in the distribution of labor market earnings
Less inequality
Total revenue
Price x quanity
Total cost
TFC + TVC
Increase of people getting HS diplomas did what to labor earnings
Became more equal
Price is less than ATC what sound happen
Should operate as long as price is equal or greater than AVC
Labor supply elasticity for men is zero. This means
Income and sub effect offset each other
P.p.f is a straight line. That means
The opp cost of productinf extra amounts of a good will not change when more is produced and the two goods use the same resources
