At many points in the semester you will be asked to calculate marginal values. The most common are marginal cost and marginal benefit. The marginal cost formula is: Change in total cost divided by change in quantity or: Change in TC / Change in Q = MC ...
Explain how to calculate opportunity cost in macroeconomics. How does the economy affect politics? Briefly describe income elasticity. How are microeconomics and macroeconomics interconnected? What are the characteristics of money in economics? How do people determine how good a country's eco...
Explain how to calculate opportunity cost in macroeconomics. What does it mean when GDP decreases? How is per capita gross domestic product calculated? How are measures of economic output adjusted using indexes? How does macroeconomics affect the economy?
Opportunity cost—When an individual makes a decision, they also calculate the cost of forgoing the next best alternative. If, for instance, you use your frequent flier miles to take a trip to the Bahamas, you will no longer be able to redeem the miles for cash. The missed cash is a...
the opportunity cost of 200 bikes is 400 beers. In other words, the opportunity cost of each bike is 2 beers for this level of production. Note that the opportunity cost of a beer equals the slope of the production possibilities frontier. If you do not recall how to calculate the slope ...
Calculate Your Business's Exact Costs! You need to know where you're starting from before you can focus on increasing profits. In other words, you must have a complete understanding of all of your expenses. Also, don't simply add up all of your expenses. You must also know the value ...
For example, the CPI provides the basis for the annualcost of livingincreases for recipients of Social Security benefits. The CPI is not a direct cost of living indicator; it is merely a price survey of a broad basket of consumer staples, but it is still utilized to estimate any cos...
Another method that will return the profit-maximizing quantity is to find where marginal costs equal marginal revenue. Instead of calculating the profit for each increment, calculate total revenue and total variable costs. Calculate marginal revenue and marginal cost in the same manner as marginal pro...
Explain why the demand curve facing a monopolist is less elastic than one facing a firm that operates in a monopolistically competitive market (all other factors held constant). Explain how purely competitive firms can use the tota...
We use data on ratings by S&P, Moody's, and Fitch of individual issues (bonds) to estimate the market share of Fitch in each industry-year cell. The total number of bond ratings used to calculate market shares is approximately 1.1 million. Each bond rating is matched to issuer data such...