Sunday, March 01, 2015

Costs and Profits

If you are using the Krugman-Wells textbook for AP economics, this is intended to supplement Module 52 -- defining profit.

Saturday, February 28, 2015

Government Waste

This was forwarded from a friend on government spending. Click Here.

Monday, February 02, 2015

AP and MC Relationship

This post is for a job I'm working on. I wanted to show the inverse relationship between the average product and marginal cost. The point is that when AP is at the highest, MC is at the lowest.

Tuesday, January 27, 2015

Income Effect

On Saturday, I fill up with gas and buy a doughnut. Now as gas prices have fallen, I find myself buying two donuts. Is the extra doughnut I buy due to the income or substitution effect? Standard textbooks say that since donuts are a small part of my budget, the extra doughnut is all substitution. I think that I'm getting an income effect too as I used to spending $X amount of money on a Saturday morning.