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| | '''Honors:''' | | '''Honors:''' |
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| − | monopolistic competition | + | <br>monopolistic competition |
| − | perfectly contestable markets | + | <br>perfectly contestable markets |
| − | cartels | + | <br>cartels |
| − | monopsony (a “buyer’s monopoly” – i.e., only one buyer) | + | <br>monopsony (a “buyer’s monopoly” – i.e., only one buyer) |
| − | cross-elasticity of demand (percent change in demand for good X | + | <br>cross-elasticity of demand (percent change in demand for good X divided by percent change in price for good Y) |
| − | divided by percent change in price for good Y)
| + | <br>income elasticity of demand (percent change in demand for good X divided by percent change in income) |
| − | income elasticity of demand (percent change in demand for good X | + | <br>consumer surplus (savings by consumers who would pay more than the market price for a good) |
| − | divided by percent change in income)
| + | <br>social cost (P-MC summed over the Q not produced due to a monopoly) |
| − | consumer surplus (savings by consumers who would pay more than the market price for a good) | + | <br>indifference curve |
| − | social cost (P-MC summed over the Q not produced due to a monopoly) | + | <br>law of equiproportional marginal benefit |
| − | indifference curve | + | <br>condition for reducing production (MC>MR) |
| − | law of equiproportional marginal benefit | + | <br>condition for shutting down (P<AVC in short run or P<ATC in long run) |
| − | condition for reducing production (MC>MR) | + | <br>kinked demand curve model for oligopoly |
| − | condition for shutting down (P<AVC in short run or P<ATC in long run) | + | <br>dominant demand curve model for oligopoly |
| − | kinked demand curve model for oligopoly | + | <br>Equations: |
| − | dominant demand curve model for oligopoly | + | :At Q = 0, TC = TFC |
| − | Equations: | + | :At Q = 1, MC = TVC |
| − | At Q = 0, TC = TFC
| + | :At all Q > 0, AVC = TVC / Q |
| − | At Q = 1, MC = TVC
| + | :At all Q > 0, AFC = TFC / Q |
| − | At all Q > 0, AVC = TVC / Q
| + | :At all Q, ATC = AVC + AFC |
| − | At all Q > 0, AFC = TFC / Q
| + | :MC = W / MP (where W is wage per unit of labor, and labor is the only input) |
| − | At all Q, ATC = AVC + AFC
| + | :TVC = sum of MC |
| − | MC = W / MP (where W is wage per unit of labor, and labor is the only input)
| + | :AVC = W / AP when labor is the only input and W is the wage or cost of the labor |
| − | TVC = sum of MC
| + | :TFC = Q x AFC |
| − | AVC = W / AP when labor is the only input and W is the wage or cost of the labor
| + | :TVC = Q x AVC |
| − | TFC = Q x AFC
| + | :TC = Q x ATC |
| − | TVC = Q x AVC
| + | :long run average costs (LRAC) are never more than short run average costs (SRAC) for a given Q. Why? See the alternative definition of “long run” in “Medium” list above |
| − | TC = Q x ATC
| + | :LRAC = P x (I / Q), where I is input and Q is output and P is price of the input |
| − | long run average costs (LRAC) are never more than short run average costs (SRAC) for a
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| − | given Q. Why? See the alternative definition of “long run” in “Medium” list above
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| − | LRAC = P x (I / Q), where I is input and Q is output and P is price of the input
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