Chapter 25: Consumer Choice:

Terms & Definitions

Examples from Class & Mr. Han's Examples

Concepts, Graphs, Tables Including (but not limited to) ...

o Indifference Curves (IC) o Budget Constraints (BC) o Consumer's Terms of Trade (MRS = Slope of IC) o Market Terms of Trade (Slope of BC) o Optimal Bundle (where IC just touches BC and slopes are equal)

Chapter 11: Cost & Profit Under Competition:

Terms & Definitions

Examples from Class & Mr. Han's Examples

Concepts, Graphs, Tables Including (but not limited to)

o Total Cost Curve o Sunk, Fixed and Variable Costs o Implicit and Explicit Costs o Accounting and Economic Profits o Marginal Cost, Average Variable Cost, Average Total Cost (a.k.a Avg Cost) o What does the firm's cost structure look like graphically? What do those curves tell

you? o How can we use the AVC and ATC Curves to show VC, FC and TC? o How can we show TR on the graph or compute from a table? o How does a firm maximize profit