Determining the Shutdown Point of a Firm This continues a previous post on profit maximization. The question we want to continue with is when should
Tag: Microeconomics
Microeconomics Cost Formulas
Here is a list of some of basic microeconomics formulas pertaining to revenues and costs of a firm. Remember when you’re using these formulas there
Trade Offs and Indifference Curves
Before we talk about choices, preferences, trade-offs and indifference curves, we should briefly look over some key terms. We assume people are rational decisions makers
Shapes of Indifference Curves
The shapes of indifference curves are smooth with unique tangent at any bundle we have well define marginal rate of substitution (MRS). MRS is undefined
Intro to Demand Theory – How to Manage Constraints
Welcome to the next section following a discussion on utility and indifference curves (preferences of consumers). We are now into a discussion on demand theory;
Cobb Douglas Function – Demand Theory
In the past installments from DiscussEconomics on demand theory, now we’re venturing into the graphical and mathematical expressions of the Cobb Douglas demand function. Graphically