Market Structures in Economics: Perfect Competition, Monopoly, and Oligopoly
Short-Run vs. Long-Run Periods
The short-run period is defined as the time during which at least one factor of production is fixed. The long-run period is when all factors of production are variable.
Key Formulas
TR = P x Q
AR = TR / Q
MR = change in TR / change in Q
MC = change in TC / change in Q
TC = TVC + TFC
TC = ATC x Q
ATC = TC – TFC
AC = TC / Q
AFC = TFC / Q
AVC = TVC / Q
ATC = TC / q
Shut down point: MC = AVC
Break-even point: MC = TC
Profit Maximisation: MC = MR
Revenue maximisation: MR = 0
Profit = TR
Macroeconomics and Monetary Policy
Macroeconomics Basics
Aggregate Supply
1. Define aggregate supply.
Aggregate Supply: The total supply of all goods and services in the macroeconomy.
Aggregate supply is positively related to the price level.
2. Explain why the AS curve is upward sloping.
- Aggregate Supply is positively related to the price level.
- An increase in firms’ resources, increased productivity in workers, and resource prices going down.
Potential GDP
3. Define and explain potential GDP.
- What the economy can produce if all resources
Exchange Rate Systems: Fixed, Floating, and Managed
Exchange Rate Systems
What is an Exchange Rate?
An exchange rate is the price of one currency in terms of another. Changes in exchange rates can lead to appreciation (increase in value) or depreciation (decrease in value) under a floating exchange rate system. Under a fixed exchange rate system, these changes are referred to as revaluation and devaluation, respectively.
Types of Exchange Rate Systems
Floating Exchange Rate System
In a floating exchange rate system, the exchange rate is determined by
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Exchange Rate Systems
Exchange Rate
The price of one currency in terms of another currency. Exchange rates can fluctuate under a floating exchange rate system (appreciation/depreciation) or be adjusted by governments under a fixed exchange rate system (revaluation/devaluation).
Floating Exchange Rate
The exchange rate is determined by the interaction of demand and supply of the currency in the foreign exchange market.
Fixed Exchange Rate System
The price of one currency in terms of another is fixed by
Read MoreFinancial Capital: Types, Costs, and Harvesting
Chapter 7: Types and Costs of Financial Capital
EXAM:
- Estimate the cost of publicly traded equity capital (exchange-listed common stocks)
- Explain how capital costs combine into the weighted average cost of capital (WACC)
- Understand venture investors’ target returns and their relation to capital costs.
Implicit vs. Explicit Financial Costs:
- Formal accounting includes explicit records of debt (interest & principal) & dividend capital costs.
- No provision is made to record the less tangible expense
Product, Branding, and Pricing Strategies in Marketing
PRODUCT
A product is a set of benefits and services offered by a trader in a market. A favorable product encompasses everything a person receives in an exchange.
A product includes tangible and intangible attributes, such as packaging, color, price, and the manufacturer’s reputation. Consumers accept a product as something that satisfies their desires or needs.
CLASSIFICATION OF PRODUCTS
CONSUMER PRODUCTS
Consumer products are intended for purchase and use by consumers. These products align with consumer
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