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.