Microeconomics,, 16th Canadian Edition

where the notation means that the variables to the right of the vertical line are held constant. This function is correctly desc ...

or in population. It could also change as a result of the net effect of changes in all of the independent variables occurring at ...

The supply schedule or curve is given by This is the supply function with respect to price, all other variables being held const ...

shift the demand or supply curves and lead to different equilibrium values for price and quantity. 6. The axis reversal arose in ...

Walras did not use graphical representation. Had he done so, he would surely have placed p (his independent variable) on the hor ...

Multiplying and dividing both terms on the right-hand side of Equation 8.1 by p · Q yields Because dp and dQ are opposite in sig ...

(elastic demand) and positive if it is less than unity (inelastic demand). Total expenditure is maximized when is equal to zero. ...

which says that the utility of additional consumption of some product declines as the amount of that product consumed increases. ...

The ratio is the slope of the budget line. It is negative because, with a fixed budget, one must consume less C in order to cons ...

diminishing average product. This is not true in all cases, however, as the accompanying figure shows. In the figure below, marg ...

We are concerned with the relationship between AP and MP Where average product is rising, at a maximum, or falling is determined ...

but note that and , where L is the quantity of the variable factor used and w is its cost per unit. Therefore, Because w is a co ...

Because w is fixed, MC varies negatively with MP. When MP a maximum, MC is at a minimum. 19. Strictly speaking, the marginal rat ...

Diminishing marginal productivity implies and and hence, as we move down the isoquant of Figure 8A-1, rising and is falling, so ...

Dividing Equation 20.1 by Equation 20.2 yields That is, the ratio of the marginal products, which is –1 times the MRS, is equal ...

This condition says that profits from producing must be greater than profits from not producing. Condition 22.1 can be rewritten ...

where is the number of units produced. Because , where is the price when n units are sold, Condition 22.6 may be rewritten as U ...

To prove that for a negatively sloped demand curve, marginal revenue is less than price, let. Then For a negatively sloped dem ...

The marginal revenue produced by the factor involves two elements: first, the additional output that an extra unit of the facto ...

Rewrite this as As long as the supply curve slopes upward, ; therefore,. 28. In the text, we define MPC as an incremental ratio. ...