David Gu

December 5th, 2012

ECON 1021A
Lecture 21 Notes
Final Exam Review
Chapter 11
Understand cost curves thoroughly.
Differences between average and marginal cost curves.
When the marginal cost curve is greater/less than average total
cost, it is increasing/decreasing and intersects at the minimum
point.
All firms production occurs at marginal revenue equals marginal cost.
Chapter 12
For firms in perfect competition, their marginal revenue is its price.
The price in the long run is the intersection of marginal revenue and
average total cost.
Chapters 14 & 15
For oligopolies and monopolies, the marginal revenue has half the
slope of the demand curve.
Oligopolies will end up producing zero economic profit in the long run if
they play their games at the Nash equilibrium.
Chapter 19
Understand how value of marginal product affects labour inequality
and discrimination.
Lorenz curve, Gini ratio, redistribution, and why we use
regressive tax systems in Canada.
Chapter 7
The tax per unit is the difference between the intersection of marginal
social cost and marginal private benefit and the marginal cost at such
a quantity. The marginal cost
The deadweight loss is always between the efficient and inefficient
quantity above the marginal social cost and marginal benefit.
The horizontal distance between the supply and supply with quota is
the quota itself.
Canadian producers gain from a quota and consumers lose.

David Gu
December 5th, 2012
The vertical distance between the supply curve and the supply curve
with the tax is the tax itself.
Taxes incurve a shift upwards.
Chapter 4
The more inelastic the demand, the more the tax is paid by the
consumer.
The more elastic the demand, the more the tax is paid by the producer.
The more inelastic the supply, the more tax is paid by the producer.
The more elastic the supply, the more tax is paid by the consumer.