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Learning Outcome Statements
| 1. Demand Concepts a. calculate and interpret price, income, and cross-price elasticities of demand and describe factors that affect each measure; | |
| 2. Elasticities of Demand a. calculate and interpret price, income, and cross-price elasticities of demand and describe factors that affect each measure; | |
| 3. Substitution Effect, Income Effect, Normal and Inferior Goods b. compare substitution and income effects; c. distinguish between normal goods and inferior goods; | |
| 4. Marginal Returns and Productivity d. describe the phenomenon of diminishing marginal returns; | |
| 5. Economic Cost vs. Accounting Cost d. describe the phenomenon of diminishing marginal returns; | |
| 6. Marginal Revenue, Marginal Cost, and Profit Maximization d. describe the phenomenon of diminishing marginal returns; | |
| 7. Breakeven Analysis and Shutdown Decision e. determine and describe breakeven and shutdown points of production; | |
| 8. Understanding Economies and Diseconomies of Scale f. describe how economies of scale and diseconomies of scale affect costs. |