MGE 302 Study Guide - Midterm Guide: Statistical Significance, Diminishing Returns, Dependent And Independent Variables

• School: University at Buffalo
• Department: Management Economics
• Course: MGE 302
• Professor: Elizabeth Mohr

Document Summary

Optimal level of activity; when mb = mc. Marginal cost (cid:4666)mc(cid:4667)= (cid:3030) (cid:3028)(cid:3041)(cid:3034)(cid:3032) (cid:3041) (cid:3047)(cid:3042)(cid:3047)(cid:3028)(cid:3039) (cid:3030)(cid:3042)(cid:3046)(cid:3047) (cid:3030) (cid:3028)(cid:3041)(cid:3034)(cid:3032) (cid:3041) (cid:3028)(cid:3030)(cid:3047)(cid:3047) = (cid:3003) (cid:3002) ; when mb > mc, increase activity (cid:3030) (cid:3028)(cid:3041)(cid:3034)(cid:3032) (cid:3041) (cid:3028)(cid:3030)(cid:3047)(cid:3047) = (cid:3004) (cid:3002) ; when mb < mc, decrease activity (cid:3031)=+++(cid:3019)++f(cid:3032)+ Pr = prices of related goods or services. Direct for normal c >0 goods c < 0. Direct for d < 0 e > 0. Law of demand: qd increases when p falls; (cid:3031)/ must be negative. Inverse goods substitutes k > 0 l < 0 for m > 0 m < 0. Expected future price inverse n > 0 r > 0 s > 0. E=% (cid:3018)% (cid:3017)