MGCR 293 Study Guide - Midterm Guide: Demand Curve, Dependent And Independent Variables, Negative Relationship

• School: McGill University
• Department: Management Core
• Course: MGCR 293
• Professor: Kamal Salmasi

Document Summary

After p increase, cannot decrease consumption by a significant amount in sr. Products not purchased often, more flexibility to defer purchase in sr. Marginal value: change in a dependent variable associated with a 1-unit change in a particular independent variable. Dependent variable maximized when marginal value shifts from positive to negative. Average profit: @ q0, average profit equals to the slope of the straight line from the origin to point e (pt on the total profit curve corresponding to output q0) Slope of any straight line equals to the vertical distance between two points on the line divided by the horizontal distance between them. Upward slope = positive relationship between x and y. Downward slope = negative relationship between x and y. Marginal profit: slope of the tangent to the total profit. Ap curve rises when below mp curve. When ap falls mp < ap. Value of dy/dx is related to the steepness/flatness of the curve.