ECON 251 EXAM 3 – PURDUE QUESTIONS WITH

100% VERIFIED SOLUTIONS



P<AVC - ANSWER -shut down



 TR - ANSWER –PxQ



Max profit - ANSWER -MR = MC



 substitution effect - ANSWER -Px/Py

effect of change in "relative price"



 Profit - ANSWER -Tr-Tc

or

(mc)(q)-TC

or

q(p-ATC)



 MPl - ANSWER -change in Q / change in L



MRS (marginal rate of substitution) - ANSWER -Px/Py

or

slope



 Perfect price discrimination - ANSWER -output satisfies alloc...
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