more econ final.txt

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Author:
Anonymous
ID:
252235
Filename:
more econ final.txt
Updated:
2013-12-10 00:43:46
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froeb
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More studying
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  1. Marginal rate of return:
    (change in annual return) / (change in investment)
  2. The law of demand says that…
    When prices rise, quantity demanded falls
  3. For price searchers (monopolies), price is (greater/less) than marginal revenue, except for the first unit.
    GREATER
  4. Price taking firms should continue selling at long as price… marginal cost per unit.
    Is > or =
  5. Market clearing level:
    The point where there is no incentive to increase output and where demand and supply are equal.
  6. A price taker should shut down if…
    price is less than the average variable cost.
  7. Diseconomies of scale: What’s the relationship between production and cost?
    higher production leads to higher costs, which means that an additional unit produced would have a higher cost than the previous one
  8. Price searchers are only able to sell more if...
    they lower their price. 
  9. For a price taker, marginal revenue and price are the same, because price is…
    Constant

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