1. Output Input; ceteris paribus The law of diminishing marginal return

2. $ Output, Q specialization TVC 45º TFC Diminishing return Total Cost

3. $ Quantity MC ATC =AVC+AFC AVC AFC Unit Cost

4. $ Q ATC 1 ATC 2 ATC 3 LRAC Economies of scale Unit Cost

5. $ Output ATC Technological improvement Unit Cost

6. $ Q $ Q D D △P△P △P△P △Q△Q △Q△Q Price Elasticity

7. $ Q D △P△P △P△P △Q△Q △Q△Q Elasticity along the Demand Curve

8. $ Out put $ D D △P△P △P△P △Q△Q △Q△Q Price elasticity and Revenue

9. Price Quantity Q* MC MR Profit Maximizing Output, Q*

10. Market Demand & Supply P P* Q Q* S D

11. The Market Supply Curve P Q S

12. The Demand Curve P Q D

13. P Q D = AR MR

14. The firm’s supply (curve) $ OUTPUT MC ATC AVC

15. Profit maximizing output, Q* $ P* OUTPU T Q* MC MR

16. Perfectly Competitive Market $ Q $ Q D∑MCMC ATC P* Market Firm

17. $ Q D S Profit attracts new entry

18. $ Q D S $ Q D S $ Q D S

19. $ Q $ Q DSMC ATC AR=MR Perfectly Competitive Market MarketFirm

20. $ Output MR(Long term) ATC MC MR(Short term) Equilibrium in Perfectly Competitive Market

21. $ Q $ Q DSMC ATC D1 A sudden change in Demand

22. $ Q Pm MC ATC D=AR MR Qm Monopoly

23. $ Q D ATC (Long term) Natural Monopoly

24. Price Discriminating Monopoly $ Q D=MR AC MC Qm

25. Price Discriminating vs. Mono-price Monopoly $ Q D AC MC Qm MR

26. $ Q ATC MC D P Pm QQm Monopoly vs. Perfect Competition

27. Monopolistically Competitive Market $ Q MR ATC MC D

28. Oligopoly $ Q MC D MR

29. $ Q D S $ Q D S Price Ceiling /Rent ControlMinimum Price / Wage

30. $ Q D S Production Control/ Quota

31. $ Q D S Consumer surplus producer surplus

32. $ Q D $ Q S ┌MRP = MP*MR └MRP = W Labor Market : Demand/ Supply

33. $ Q D MC S=AC P* Q* Monopsony Q P

34. % Funds D S