Please help with examples of the following:

Wealth creating transactions Consumer (buyer) surplus and producer (seller) surplus Price vs consumer's value (maximum willingness to pay) Opportunity cost and decision-making Accounting vs. Economic profit, Profit maximization rule Fixed cost, variable cost, total cost formulas Short run (SR): fixed costs > 0; Long run (LR): fixed costs = 0 Sunk costs vs. avoidable costs Fixed-cost fallacy, hidden-cost fallacy - in reference to relevant and irrelevant costs Net present value, compounding and discounting, WACC, NPV rule Net present value (NPV) vs PV of cash flows What does NPV > 0 indicate? 

What does NPV < 0 indicate Break-even pricing and what that means Break-even quantity and what that means Shut down rules Profit- maxing, Accounting Profit vs Economic profit Zero economic profit and what that indicates Marginal revenue (MR) and marginal cost (MC), marginal decision making Profit-maxing rule Extent (how much) decisions - when to increase or decrease output based on price (P) and MC, how many workers should you hire based or marginal benefit, marginal cost Elasticity of demand (e) - basic definition, calculations, when it changes, how should you change your price? (don't forget income elasticity and cross-price elasticity (what that means for substitutes and complements)) Inelastic vs elastic - what's the difference and total revenue test Optimal (desired) mark-up vs. current (actual) mark-up Optimal mark-up rule Stay-even analysis Economies of scope is not the same as economies of scale - know the difference Learning curve concept and problems Competitive firm characteristics (Homogeneous products, free entry/exit, price-takers...) SR and LR profit Monopolistic firm characteristics and in comparison to pure competition outcomes Demand curves and market demand curves Supply and Demand graphical analysis, shortages, surplus, equilibrium.

 How taxes impact the supply and demand graph. Shift factors for supply; shift factors for demand Shifts in supply or demand to the new equilibrium price and quantity Using algebra to determine equilibrium price and quantity Market making: problems with one market maker vs a competitive market - what's optimal bid/ask for a market maker?

Answer rating: 100% (QA)

Answer lets go through each concept with examples Wealth creating transactions A company investing in research and development to create a new product that generates revenue and profits Consumer surpl... View the full answer