BIOCH498 Study Guide - Midterm Guide: Normal Good, Opportunity Cost, Market Power

• School: University of Alberta
• Department: Biochemistry
• Course: BIOCH498
• Professor: Brian Lanoil

Document Summary

Factors of production (curve is the same as classic supply and demand curve) The demand for the factor occurs because the factor is used to produce a product rather than a demand for the factor itself. Marginal product - the change in output resulting from an incremental change in the use of an input. Marginal revenue product - the change in total revenue resulting from the use of an additional unit of the input. If the firm is a price taker in the output market: If the firm is not a price taker in the output market: Suppose the firm is a monopolist in the output market. Mrp measures the contribution to revenue from an additional unit of an input. Marginal factor cost - the change in total cost resulting in the use of an input. I. e. a firm that pays for other inputs and per unit for labor.