1
Q
when are capital and labor substitutes?
A
when using one eliminates the need for the other
2
Q
when are capital and labor complements?
A
when more of one increases the marginal productivity of the other
3
Q
cost of capital
A
rental rate
4
Q
cost of labor
A
wage
5
Q
cost minimizing input combo rule
A
MPL/wage = MPC/rental rate
Mircoeconomics
flashcards
Decks in class (30)
# Cards
-
46: Income effects, substitution effects, and elasticity7
-
47: Interpreting price elasticity of demand16
-
48: Other elasticities14
-
49: Consumer and producer surplus4
-
50: Efficiency and deadweight loss11
-
51: utility maximization14
-
80: Indifference curves and consumer choice13
-
52: Defining Profit8
-
53: Profit maximization7
-
54: The production function9
-
55: Firm Costs13
-
56: Long run costs and economies of scale5
-
57: Introduction to market structure19
-
58: Intro to perfect competition3
-
61: Intro To Monopoly4
-
62: Monopoly And Pubic Policy3
-
63: Price Discrimination6
-
64: Intro To Oligopoly7
-
65: Game Theory8
-
66: Oligopoly In Practice5
-
67: Intro To Monopolistic Competition7
-
68: Product Differentiation and Advertising4
-
69: Introduction and Factor Demand14
-
70: The Markets for Land and Capital4
-
71: The Market for Labor15
-
72: Cost Minimizing Input Combo5
-
73: Theories of Income Disitribution14
-
74: Intro to Externalities8
-
75: Externalities and Public Policy11
-
76: Public Goods16
