| Key microeconomic concepts: 1. Concept of highest value use 2. Opportunity Cost 3. Marginal analysis (thinking)(use to determine profit-maximizing production, MR=MC) 4. Supply and Demand analysis (be able to move the curves, understand why upward or downward slopes, and what shifts) 5. Elasticity (demand, supply, income, and cross) (what variables make more elastic and more inelastic)(know and be able to use both the midpoint equation and the percentage equation)(understand inferences one can make based on elasticity to increase total revenue and/or profits) 6. Markup Rule (P-MC)/P=1/ |
e | 7. Shutdown Decision analysis – (what costs are relevant and what is not relevant based on time horizons). 8. Breakeven Decision analysis (what costs are relevant and what is not relevant based on time horizons). 9. Components of costs (fixed, variable, avoidable, unavoidable, total) 10. Characteristics, differences, and implications of the four different markets 11. Behavioral economics 12. Price Discrimination (necessary requirements, characteristics, types (direct, perfect, indirect), and implications) 13. Transfer Pricing |
TermsMicroeconomics
