Econ formulae Microeconomics
Chapter 2 - Supply and Demand (2)
● Demand Function
● Supply Function
Chapter 3 - Applying the Supply and Demand Model (3)
● Price elasticity of demand
● Price elasticity of supply
● Tax incidence on consumers
Chapter 4 - Consumer Choice (5)
● Marginal rate of substitution
● Utility function
● Marginal utility
● Budget constraint
● Marginal rate of transformation
Chapter 6 - Firms and production (7)
● Profit
● Production function
● Marginal product of labor
● Average product of labor
● Marginal product of capital
● Isoquants
● Marginal rate of substitution
● Cobb-Douglas production Function
Chapter 7 - Costs (10)
● Fixed cost
● Marginal cost
● Average fixed cost
● Average cost
● Variable cost
● Marginal cost - Average variable cost
● Isocost line
● MRTS
● Long run and Economies of scope
,Chapter 8 - Competitive Firms and Markets (13)
● Residual demand
● Competitive elasticity of demand
● Marginal product
● Short-run loss
● Long-run entry and exit
● Residual supply
● Competitive elasticity of supply
● Long-run equilibrium
Chapter 10 - General Equilibrium and Economic Welfare (16)
● Incomplete coverage
● Efficiency of competition
● Marginal Rate of Transformation
Chapter 11 - Monopoly (17)
● Marginal revenue curve
● Marginal revenue and price elasticity
● Profit-maximizing quantity
● Lerner index
Chapter 13 - Oligopoly and Monopolistic Competition (19)
● Marginal revenue Product of Labor
● Wage
● Profit-Maximization
● Monopsony
Chapter 15 - Factor Markets (20)
● Marginal revenue product of labor
● Wage
● Profit-maximization
● Monopsony
Chapter 14 - Game Theory (21)
● Definitions
● Auctions
Definitions (23)
1
, Chapter 2 - Supply and demand
Demand function (coffee)
𝑄 = 𝐷(𝑝, 𝑝𝑠, 𝑌)
𝑄 = 8. 56 − 𝑝 − 0. 3𝑝𝑠 + 0. 1𝑌)
Q = quantity demanded
p = price of coffee
ps = price of sugar
Y = income
8.56 = fixed costs of production (eg. technology, machinery)
Demand change in price
∆𝑝 = 𝑝2 − 𝑝1
Supply function (coffee)
𝑄 = 𝑆(𝑝, 𝑝𝑐, 𝑌)
𝑄 = 9. 6 + 0. 5 𝑝 − 0. 2𝑝𝑐)
Q = quantity supplied
p = price of coffee
pc = price of cocoa
9.6 = fixed costs of production (eg. technology, machinery)
Supple change in price
∆𝑄 = 𝑄2 − 𝑄1
2
Chapter 2 - Supply and Demand (2)
● Demand Function
● Supply Function
Chapter 3 - Applying the Supply and Demand Model (3)
● Price elasticity of demand
● Price elasticity of supply
● Tax incidence on consumers
Chapter 4 - Consumer Choice (5)
● Marginal rate of substitution
● Utility function
● Marginal utility
● Budget constraint
● Marginal rate of transformation
Chapter 6 - Firms and production (7)
● Profit
● Production function
● Marginal product of labor
● Average product of labor
● Marginal product of capital
● Isoquants
● Marginal rate of substitution
● Cobb-Douglas production Function
Chapter 7 - Costs (10)
● Fixed cost
● Marginal cost
● Average fixed cost
● Average cost
● Variable cost
● Marginal cost - Average variable cost
● Isocost line
● MRTS
● Long run and Economies of scope
,Chapter 8 - Competitive Firms and Markets (13)
● Residual demand
● Competitive elasticity of demand
● Marginal product
● Short-run loss
● Long-run entry and exit
● Residual supply
● Competitive elasticity of supply
● Long-run equilibrium
Chapter 10 - General Equilibrium and Economic Welfare (16)
● Incomplete coverage
● Efficiency of competition
● Marginal Rate of Transformation
Chapter 11 - Monopoly (17)
● Marginal revenue curve
● Marginal revenue and price elasticity
● Profit-maximizing quantity
● Lerner index
Chapter 13 - Oligopoly and Monopolistic Competition (19)
● Marginal revenue Product of Labor
● Wage
● Profit-Maximization
● Monopsony
Chapter 15 - Factor Markets (20)
● Marginal revenue product of labor
● Wage
● Profit-maximization
● Monopsony
Chapter 14 - Game Theory (21)
● Definitions
● Auctions
Definitions (23)
1
, Chapter 2 - Supply and demand
Demand function (coffee)
𝑄 = 𝐷(𝑝, 𝑝𝑠, 𝑌)
𝑄 = 8. 56 − 𝑝 − 0. 3𝑝𝑠 + 0. 1𝑌)
Q = quantity demanded
p = price of coffee
ps = price of sugar
Y = income
8.56 = fixed costs of production (eg. technology, machinery)
Demand change in price
∆𝑝 = 𝑝2 − 𝑝1
Supply function (coffee)
𝑄 = 𝑆(𝑝, 𝑝𝑐, 𝑌)
𝑄 = 9. 6 + 0. 5 𝑝 − 0. 2𝑝𝑐)
Q = quantity supplied
p = price of coffee
pc = price of cocoa
9.6 = fixed costs of production (eg. technology, machinery)
Supple change in price
∆𝑄 = 𝑄2 − 𝑄1
2
