Total Revenue Test for determining price elasticity of demand.

P x Q = Total Revenue
If higher prices means higher total revenue, the price elasticity < 1 or Inelastic price elasticity of demand
If higher prices means lower total revenue, the price elasticity > 1 or Elastic price elasticity of demand
Elasticity Coefficients
Absolute value > 1 means elastic
Absolute value < 1 means inelastic
Cross-price elasticity: Negative = Complement; Positive = Substitute
Income elasticity: Negative = Inferior Good; Positive = Superior or Normal Good
Profit Maximizing point: MC=MR Firms should continue to produce more output until they reach this point. Until then
MC<MR
Cost-Benefit: You should continue doing something until the MC=MB
Utility per dollar maximization: if the marginal utility per dollar for good A is greater than the utility per dollar for good
B, you
should consume less of good B and more of good A until MUA/PA=MUB/PB
Lowest Cost Resource Combination of production: You should use more of the resource with a greater Marginal
Revenue
Product per dollar and less of the resource of with less Marginal Revenue Product per dollar until MRP L/PL=MRPC/PC
Marginal Cost of labor: MC=W/MPL
Marginal Revenue Product: Δ Total Revenue/Δ Quantity of resource OR Marginal Product x Price
GDP