Microeconomics I
Fiches de réveisions
Fiches de réveisions
Kartei Details
| Karten | 336 |
|---|---|
| Sprache | English |
| Kategorie | VWL |
| Stufe | Universität |
| Erstellt / Aktualisiert | 28.05.2019 / 02.03.2025 |
| Weblink |
https://card2brain.ch/box/20190528_microeconomics_i
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| Einbinden |
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Budget constraint for present and future consumption
Future value
Comparative statics of intertemporal choice
Equivalent and compensating variations' definitions
Compensating variation graph
Equivalent variation graph
Equivalence of CV and EV in quasi-linear preferences
The extensive and intensive margin
Elasticity's formula
Elasticity of a linear demand curve
Elasticity and total revenue
Elasticity and total revenue graph
Constant elasticity demand
Elasticity and marginal revenue
Income elasticity
Cross price elasticity
Maximise profit subject to output constraint/technology
Examples of technology
Marginal product of factor
Diminishing marginal product
Check if diminishing marginal product
Derive twice the production function
Difference between marginal product and return to scale
Marginal products describe the change in output level as a single input level changes
Returns-to-scale describes how the output level changes as all input levels change in direct proportion (e.g. all input levels doubled, or halved)
Examples of return to scale: fixed proportions and perfect substitutes
Examples of return to scale: Cobb-Douglas
(marginal) Technical Rate of Substitution (TRS)
Diminishing Technical Rate of Substitution
A well-behaved technology is
I convex: if the input bundles x' and x'' both provide y units of output then the mixture tx' + (1-t)x'' provides at least y units of output, for any 0 < t < 1
I monotonic: more of any input generates more output
Long run VS short run
Short run: At least one factor of production is fixed
Long run: All factors of production are variable
Economic profit
Present value's formula
Example of a quasi-fixed factor
electricity only if producing
Fixed factor
Paying even if no production
Short-run profit maximization
Isoprofit line
Construct from profit maximization
