Econ final

What is MRDARP?

Marginal Revenue=Demand, Average Revenue, Price

Jacob Clifford’s favorite band

ACDC

Marginal Cost curve shape

Nike logo

Profit maximizing formula for all firms

MR=MC

Wheels go round and round vehicle

Bus

Who is confronted by problem of scarcity?

Society

What is opportunity cost?

The cost when a decision is made

What does the law of demand state about price and quantity?

There is an inverse relationship between price and quantity

What makes a good inferior?

Demand increases when income falls

How does the change in price affect a complementary good when it changes?

Direct relationship

What is the equation for profit?

TR-TC

If looking at a table of total labor of each worker, how do you find marginal product?

Change in product/Change in input

How do you find the marginal cost on a table from 1 unit to 2

above-below

What is the shut down rule

AVC> price

How do you compute total value when given price and quantity?

PxQ

If there are two people in a prisoner’s dilemma and they have the choice to confess or not confess, what is their dominant strategy?

both confess

What type of profit do monopolies make in the long run?

Economic

Why is factor demand called “derived demand”?

Demand for resources is dependent on the product produced

What is it called when you have to pick one option out of many?

A trade-off

Formula for comparative advantage

Opportunity cost/units gained

Why do we have to make choices?

Scarcity

What is it called when you pay someone to do something?

Incentive