FIN30210 Lecture Notes - Lecture 9: Marginal Product, Opportunity Cost
Document Summary
20-25 mc, between 1 and 3 sa (5 minutes per problem) Look at homework, quizzes, and in-class assignments. Then reference back to the notes and the slides. A lot of qualitative and then some analysis. Know the process, how to do things, how to solve it. Jerome always spends on new apps, regardless to what ends up happening. Always pays the same price: perfectly elastic (horizontal) Can buy as little or as much as i want, so quantity is all variable. So will only purchase if it"s at that one price. Spends: he will fluctuate how much he buys given the price but always maintains the same amount of . So as prices go down, responds by buying a little bit more, but not just by the slope. If variables added (even if with some multiplication) (not cogg-douglas): Part of the formula for e is the same as the equation for mp.
