Important Things To Know * Markup = P-MCP= -1price elasticity of demand * Market demand = firm’s demand for a monopoly ONLY * TR=aQ-bQ2 and MR=a-2bQ * Monopoly output is ALWAYS LESS than competitive output * Colluding leads to the ideal situation (illegal) * MC=WMPL * X=aa+b×MPx or Y=ba+b×MPy * Y = M/Py – (Px/Py)X * Isocost Line: C(Q)=wL+rK | Variation: K=TCr-wrL | Slope: -(w/r) * Isoquant Slope: -(MPL/MPK) | MPLMPK=aKbL=∆K∆L * Optimal cost-minimization:
Premium Monopoly Economics Supply and demand
What is Elasticity? - Elasticity refers to the degree of responsiveness in supply or demand in relation to changes in price. If a curve is more elastic‚ then small changes in price will cause large changes in quantity consumed. If a curve is less elastic‚ then it will take large changes in price to effect a change in quantity consumed. Graphically‚ elasticity can be represented by the appearance of the supply or demand curve. A more elastic curve will be horizontal‚ and a less elastic curve will
Premium Supply and demand
Perfect Competition: 1. Same product + No barriers to entry + No NPCF easy to switch. 2. Increase P slightly above market P‚ no sales demand is perfectly elastic. 3. D curve is horizontal at the P determined by the intersection of market S&D curves Profit Maximzing decision 1. Since MR=MC 2. Set P (price) = MC 3. MR curve = Demand curve 4. Firms can sell all they want at this market price Q* is the profit maximizing level of output. 1.For output < Q*‚ P < MC. Increase output
Premium Economics Monopoly Supply and demand
90%= 1.645 95% = 1.96 98% = 2.33 99% = 2.575 Hypothesis Testing *A credit card company wondered whether giving frequent flyer miles for every purchase would increase card usage‚ which has a current mean of $2500 per year. They gave free flyer miles to a simple random sample of 25 card customers and found the sample mean to be $2542 and the standard deviation to be $109. n= 25 Ho (Claim) µ=2500 OR Ha µ > 2500 *Use t-table n .50 Ha
Premium Sample size Normal distribution Standard deviation
Ch.1 financial intermediation results from economies of scale and the specialization of financial transactions. (banks‚ inv. companies [mutual & pension funds]‚ insurance companies‚ credit unions‚ brokerage firms‚ investment banks). Inv. banks assist firms in raising capital‚ create the market for innovative new securities that meet the risk and return demand (CMOs‚ collateralized mortgage obligations – derivative security that separates the cash flows of a mortgage pool into different classes
Premium Investment Finance Economics
A boy wants to play on the volleyball team but there are only all girl team. What amendment protects his rights? The Fourteenth Amendment guarantees that "no state shall . . . deny to any person within its jurisdiction the equal protection of the laws." Added to the Constitution in 1868‚ this "equal protection clause" was aimed primarily at protecting the recently freed slaves against southern governments that had stripped the freedmen of their political and legal rights. The courts‚ however‚ have
Premium United States Constitution Supreme Court of the United States First Amendment to the United States Constitution
The Control Matrix A tool designed to assist in analyzing the effectiveness of controls‚ PCAOB Auditing Standard Number 5 – “Effectiveness of Control Design” Establishes the criteria to be used in evaluating the controls in a particular business process Steps in Preparing a Control Matrix STEP I: Specify control goals 1. Identify the Operations Process Control Goals -Effectiveness goals -Efficiency goals -Security goals 2. Identify Information Process Control Goals -Input Goals -Update Goals Operations
Premium Supply chain management Inventory
Kavin Chinnasamy BADM 375 Cheat Sheet Queues form due to variability in arrival times‚ service times & service availability. Impact of variability increases as utilization increases! (throughput goes up or capacity goes down). Little’s Law: I = R x T (congestion = arrival rate x delay). Little’s Law is I = R*T (where I = avg inventory‚ r = throughput rate‚ t = avg flowtime). Delay explodes as the arrival rate approaches the system capacity: Delay ≈ 1/(capacity–arrival rate). The utilization
Premium Inventory Economic order quantity Costs
Study Guide for Exam IV Econ 302/BUS 302 The exam is similar in length and form to the previous 3 exams. Bring a tall‚ green skinny scantron to the exam‚ a calculator‚ and a pencil. Scratch paper will be provided‚ if needed. You will be provided with a copy of the t-distribution on page 920 in the text‚ and the F-distribution on page 925. The formulas for the full F test statistic and the partial F test statistic will be given on the exam. All other formulas you will be expected to know (excluding
Premium Statistics Final examination School terminology
Cheat Sheet: Note: UCC governs the sale of goods; NOT SERVICES Offer+acceptance+consideration=contract Four types of contracts: 1. consideration: when you have a contract for a bargained for exchange where the promisor receives a benefit to the promisee’s detriment; note: benefit/detriment has to induce the promise 2. moral obligation: promise+antecedent benefit (rare) 3. promissory estoppel: a contract exists when a person reasonably relies upon a promise to his detriment 4. form: some contracts
Premium Contract