Econ 205 FInal exam Questions and Answers Distinction Level

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subsidy - -money that government gives away in a market (reverse tax) -Subsidy DWL - -(1/2)(s)(change in Q) -Subsidy incidence - -benefit of per unit subsidy -Profit - -tt=TR-TC -Fixed Cos... t - -Costs that do not vary with the quantity of output produced -variable costs - -costs that vary with the quantity of output produced -total cost - -TC=FC+VC -marginal cost - -MC=change in TC/ Q -Average cost - -AC=TC/Q -total revenue - -TR=P*Q -Marginal Revenue - -MR=change in TR/change in Q -Marginal profit - -MP=MR-MC -Average Cost curve - -TT=(P-AC)*Q -Golden rule of production - -Marginal revenue equals marginal cost= profit - [Show More]

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