Changes

===Medium===

===Medium===

*consumer surplus (savings by consumers who would pay more than the market price for a good)

*'''consumer surplus''' (savings by consumers who would pay more than the market price for a good)

*indifference curve

*'''indifference curve'''

*fixed costs (FC)  

*'''fixed costs''' (FC)  

*variable costs (VC)  

*'''variable costs''' (VC)  

*average total cost (ATC) (this is all the costs divided by the quantity of output Q)

*'''average total cost''' (ATC) (this is all the costs divided by the quantity of output Q)

*average variable costs (AVC) (total variable costs divided by the quantity of output Q)

*'''average variable costs''' (AVC) (total variable costs divided by the quantity of output Q)

*total costs (TC = TVC + TFC)

*'''total costs''' (TC = TVC + TFC)

*elastic demand

*'''elastic demand'''

*inelastic demand

*'''inelastic demand'''

*price elasticity of demand (percent change in quantity demanded divided by percent change in price, dropping the negative sign)

*'''price elasticity of demand''' (percent change in quantity demanded divided by percent change in price, dropping the negative sign)

*marginal cost (MC = change in total cost (TC) due to producing one more unit of output Q)

*'''marginal cost''' (MC = change in total cost (TC) due to producing one more unit of output Q)

*total fixed costs (TFC) do not change as more is produced, thus MC = change in TVC due to one more output Q)

*'''total fixed costs''' (TFC) do not change as more is produced, thus MC = change in TVC due to one more output Q)

*marginal revenue (MR)

*'''marginal revenue''' (MR)

*alternative definition of the “long run”: enough time to adjust all inputs in order to produce a given Q at the lowest possible cost

*alternative definition of the '''“long run”''': enough time to adjust all inputs in order to produce a given Q at the lowest possible cost

*variable inputs (inputs that are increased to produce more Q in the short run)

*'''variable inputs''' (inputs that are increased to produce more Q in the short run)

*fixed inputs (inputs that cannot be increased in the short run to produce more Q)

*'''fixed inputs''' (inputs that cannot be increased in the short run to produce more Q)

*returns to scale (increasing, decreasing or constant?  Look at whether output Q increases for increase in input I)  Note that "economies to scale" is the same as "increasing returns to scale."

*'''returns to scale''' (increasing, decreasing or constant?  Look at whether output Q increases for increase in input I)  Note that "economies to scale" is the same as "increasing returns to scale."

*income effect

*'''income effect'''

*substitution effect

*'''substitution effect'''

*inferior good (a good that sees a decrease in demand when income increases, and vice-versa)

*'''inferior good''' (a good that sees a decrease in demand when income increases, and vice-versa)

*marginal product (increase in output due to additional input: Q = sum MP)

*'''marginal product''' (increase in output due to additional input: Q = sum MP)

*law of diminishing marginal return

*'''law of diminishing marginal return'''

*perfect competition (know the conditions for it)

*'''perfect competition''' (know the conditions for it)

*In a perfectly competitive market ...

*'''In a perfectly competitive market ...'''

::the increase in profit from an additional Q = P - MC

::the increase in profit from an additional Q = P - MC

::the firm increases Q only if P > MC

::the firm increases Q only if P > MC