Exam (elaborations)
AGEC 217, Exam 1|18 Accurate Q’s and A’s
- Course
- Institution
AGEC 217, Exam 1|18 Accurate Q’s and A’s
[Show more]
Content preview
AGEC 217, Exam 1|18 Accurate Q’s andA’s
Equilibrium - -The equilibrium point is where supply meets or equals
demand. At this points quantity supplied exactly equals quantity demanded.
This is also called the market clearing point.
- market surplus - -the amount by which the quantity supplied exceeds the
quantity demanded at a given price; excess supply
- market shortage - -the amount by which the quantity demanded exceeds
the quantity supplied at a given price; excess demand
- Total Cost (TC) - -total fixed costs plus total variable costs
-TC= FC + VC
- Total Revenue (TR) - -the total money received from the sale of a product
-TR= P X Q
- marginal revenue - -the additional income from selling one more unit of a
good; sometimes equal to price
-MR = ∂TR/∂Q
- marginal cost - -the cost of producing one more unit of a good
-MC = ∂TC/∂Q
- perfect competition - -a market structure in which a large number of firms
all produce the same product
-In perfect competition, MR = P and is a horizontal line. This is due to
perfectly competitive firms having no market power or no ability to set price.
They take whatever price the market gives them.
-They are called Price Takers.
- Monopoly - -A market in which there are many buyers but only one seller.
>In a monopoly, P does not equal MR.
>MR is derived from the demand curve and is
downward sloping.
>To find the profit maximizing price and quantity, find where MR = MC and
read down to the x-axis for quantity.
- simple interest - -Interest earned only on the original principal amount
invested
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Nursephil2023. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $8.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
85169 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now