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Formula sheet in given derivatives, slope of line, budget line, marginal rate of substitutions, income elasticity of demand, cost formula and profit maximization.
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Formulas for microeconomics midterm Derivatives: d(yz)/dx = y(dz/dx) + z(dy/dx) dxn^ /dx = nx n- Slope of a line y(x): dy/dx Approximate slope of a line between points (x 1 , y 1 ) and (x 2 , y2 ): (y 2 - y 1 )/(x 2 – x 1 ) Slope of a straight line y = a + bx: dy/dx = b Budget line: xpx + yp (^) y = I Slope of budget line: -px /py Marginal rate of substitution: MRS = -MUx /MUy Price elasticity of demand: ep = (dQ/Q)/(dP/P) = (dQ/dP)(P/Q) Income elasticity of demand: eI = (dQ/Q)/(dI/I) = (dQ/dI)(I/Q) Cross elasticity of demand: exy = (dx/x)/(dPy/Py) = (dx/dPy)(Py/x) Cost formulas: C(q) = F + V(q) ATC(q) = F/q + AVC(q) MC(q) = dC/dq = dV/dq Profit maximization: MR(q) = MC(q) Marginal revenue of monopolist: MR = p + q(dp/pq) = p(1 + 1/ep)