Study Guides (390,000)
CA (150,000)
SFU (5,000)
BUS (800)
BUS 207 (40)
Study Guide

# [BUS 207] - Final Exam Guide - Ultimate 32 pages long Study Guide!

Department
Course Code
BUS 207
Professor
Karen Ruckman
Study Guide
Final

This preview shows pages 1-3. to view the full 32 pages of the document.
SFU
BUS 207
FINAL EXAM
STUDY GUIDE

Only pages 1-3 are available for preview. Some parts have been intentionally blurred.

Only pages 1-3 are available for preview. Some parts have been intentionally blurred.

ogurtBUS 207 CHEAT SHEET
Lecture 1
MARGINAL BENEFITS
ï‚·total benefits of last unit consumed
ï‚·Goes down w/ more units consumed â€“ diminishing marginal returns
MARGINAL COST
ï‚·Addition to TC from last unit produce
ï‚·Always increasing = opportunity cost of leisure forgone
MAX NET BENEFIT (PROFITS)
ï‚·MB=MC
ï‚·Derivative of Profit=zero
Lecture 2 - Demand
DEMAND â€“ never goes negative
DETERMINANTS
1. Own price = along.
2. Income = shifts
3. Price of related goods = shifts
find more resources at oneclass.com
find more resources at oneclass.com

Unlock to view full version

Only pages 1-3 are available for preview. Some parts have been intentionally blurred.

DEMAND FUNCTION VS DEMAND CURVE
Relationship between P&Q and all other demand factors
DC â€“ relationship only between P&Q hold others constant
Z FACTORS
1. Network effects
2. Complements
3. Compatibility
MARGINAL REVENUE MR
ï‚·MR will always have the double slope of TR (inverse Dc=ïƒ¨P= 2+q)
ï‚·Good = 1 more unit= TR goes up(until you are profit maximizing)
ï‚·Bad= 1 more unit =Price goes down! = profits go down
ï‚·MR CAN go negative = when bad outweighs the good
ELASTICITY
To figure out when the bad outweighs the good.
%âˆ†Q or %âˆ†P = dQ or dP (derivative)
1. Own price elasticity: Elasticity at a point = (P/Q)* (dQ/dP)
a. You must know the equations for DC
b. And price (or quantity)
2. Arc Elasticity: elasticity between two point on Dc
find more resources at oneclass.com
find more resources at oneclass.com