B. Macroeconomic Policy
1. inflation, unemployment, and growth
2. fiscal and monetary policy
B. Public Choice
1. voters
2. politicians
3. civil servants
IV. Elasticity
1. inelastic, elastic, unitary elastic
2. elasticity and total revenue
3. determinants of elasticity
B. Cross elasticity
1. complements
2. substitutes
3. unrelated goods
C. Income elasticity
1. normal goods
2. inferior goods
D. Elasticity of Supply
1. inelastic, elastic, unitary elastic
2. determinants of elasticity
2. the production function
a. technical efficiency
b. long run and short run
B. Short run costs
1. explicit costs, implicit costs
2. cost concepts
a. total fixed cost, total variable cost, total cost
b. average fixed cost, average variable cost,
average total cost
c. marginal cost
1. total revenue - total cost
2. best quantity: marginal revenue = marginal cost
B. Economic Loss
1. exit (only in long run)
2. short run
a. minimize loss
b. shutdown
C. Breakeven
1. firm is covering all its costs
2. no excess profit
D. The Long Run
1. Entry and Exit
a. impact on industry
b. impact on firm