Document
... Next, we need to know something about the consumer the firm faces. Every firm should have an estimated demand curve. We can think about a demand curve in one of two ways For every price I could charge, my demand curve tells me what my sales will be. ...
... Next, we need to know something about the consumer the firm faces. Every firm should have an estimated demand curve. We can think about a demand curve in one of two ways For every price I could charge, my demand curve tells me what my sales will be. ...
Demand and supply notes
... Determinants of supply: cost of production, number of firms, opportunity cost, taxes, technology and expectations. ...
... Determinants of supply: cost of production, number of firms, opportunity cost, taxes, technology and expectations. ...
CH 4-6 Packet
... Cartel – a formal organization of producers that agree to coordinate prices and production Complements – two goods that are bought and used together Demand – the desire to own something and the ability to pay for it – the consumer is “willing and able” Quantity Demanded – the amount a consumer is ...
... Cartel – a formal organization of producers that agree to coordinate prices and production Complements – two goods that are bought and used together Demand – the desire to own something and the ability to pay for it – the consumer is “willing and able” Quantity Demanded – the amount a consumer is ...
Economics 101
... increases. Each firm produces the level of output where market price equals marginal cost. Since marginal cost is above the average cost curve at this point, each of the firms will earn positive profits. In the long run, new firms will enter the industry attracted by the positive profits. The market ...
... increases. Each firm produces the level of output where market price equals marginal cost. Since marginal cost is above the average cost curve at this point, each of the firms will earn positive profits. In the long run, new firms will enter the industry attracted by the positive profits. The market ...
11 Perfect Competition
... structure from most to least competitive is perfect competition, imperfect competition, oligopoly, and pure monopoly. • The main criteria by which one can distinguish between different market structures are: the number and size of producers and consumers in the market, the type of goods and services ...
... structure from most to least competitive is perfect competition, imperfect competition, oligopoly, and pure monopoly. • The main criteria by which one can distinguish between different market structures are: the number and size of producers and consumers in the market, the type of goods and services ...
II. SUPPLY AND DEMAND
... A. Willingness to Pay -- Demand 1. A household decides the amounts of goods to buy given an income. 2. The objective of a household is to maximize utility. A household will buy a good so long as the marginal benefit (MB) exceeds the price (P). 3. The individual demand curve is downward sloping. 4. T ...
... A. Willingness to Pay -- Demand 1. A household decides the amounts of goods to buy given an income. 2. The objective of a household is to maximize utility. A household will buy a good so long as the marginal benefit (MB) exceeds the price (P). 3. The individual demand curve is downward sloping. 4. T ...
Do you plan to take any more economics courses at UCSB?
... And back to our lecture… What’s making all that noise? ...
... And back to our lecture… What’s making all that noise? ...
Monopolistic Competition (continued)
... that your product is better, more convenient, of better quality (e.g. the lemons problem), safer, hipper, easier to use, easier to reach (location), easier to understand, more versatile, etc. A big part of this effort involves marketing and advertising. Indeed many firms in monopolistically competit ...
... that your product is better, more convenient, of better quality (e.g. the lemons problem), safer, hipper, easier to use, easier to reach (location), easier to understand, more versatile, etc. A big part of this effort involves marketing and advertising. Indeed many firms in monopolistically competit ...
Ch.7+Public goods
... • Offered a flight if 65% of seats sold • Used average cost to make decisions ...
... • Offered a flight if 65% of seats sold • Used average cost to make decisions ...
12.4 game theory
... Efficiency requires that marginal benefit (price) equal marginal cost. In monopolistic competition, price exceeds marginal cost—a sign of inefficiency. But this inefficiency arises from product differentiation— variety—that consumers value and for which they are willing to pay. So in a broader view, ...
... Efficiency requires that marginal benefit (price) equal marginal cost. In monopolistic competition, price exceeds marginal cost—a sign of inefficiency. But this inefficiency arises from product differentiation— variety—that consumers value and for which they are willing to pay. So in a broader view, ...
Pricing Strategies
... This occurs in markets where pricing information is easily determined by customers and can be easily compared. Examples: Internet ...
... This occurs in markets where pricing information is easily determined by customers and can be easily compared. Examples: Internet ...
Test 2 model answers
... will increase the supply, there will also be less differentiation between products so the elasticity of demand facing each firm will increase. This combination forces the equilibrium price down. Firms will continue to be attracted to the market as long as profits are positive. [Firms will exit if pr ...
... will increase the supply, there will also be less differentiation between products so the elasticity of demand facing each firm will increase. This combination forces the equilibrium price down. Firms will continue to be attracted to the market as long as profits are positive. [Firms will exit if pr ...
Short-run
... additional quantity of output that is produced by using one more unit of that input. ...
... additional quantity of output that is produced by using one more unit of that input. ...
1 - Carlos Pitta
... Question # 9: Here you need to calculate two areas: the rectangle with an area (BASE*HEIGHT) equal to: (Height: 22-16=6, in the price axis) times (Base: 0 to 40=40, in the quantity axis)= 240 PLUS, the triangle Base (80 – 40=40, in the quantity axis) times (Height: 22-16=6, en the price axis) times ...
... Question # 9: Here you need to calculate two areas: the rectangle with an area (BASE*HEIGHT) equal to: (Height: 22-16=6, in the price axis) times (Base: 0 to 40=40, in the quantity axis)= 240 PLUS, the triangle Base (80 – 40=40, in the quantity axis) times (Height: 22-16=6, en the price axis) times ...
3 - Michael T. Maloney
... compared to the other is the marginal revenue in one market compared to the other, again assuming that the total supply is fixed. Profit maximization requires an equalization of these two margins. Next the monopolist has to decide how many units to produce in total. This does not really complicate t ...
... compared to the other is the marginal revenue in one market compared to the other, again assuming that the total supply is fixed. Profit maximization requires an equalization of these two margins. Next the monopolist has to decide how many units to produce in total. This does not really complicate t ...
Is the Competitive Market Efficient?
... A monopoly is a firm that has sole provider of a good or service. The self-interest of a monopoly is to maximize its profit. To do so, a monopoly sets a price to achieve its selfinterested goal. As a result, a monopoly produces too little and underproduction results. ...
... A monopoly is a firm that has sole provider of a good or service. The self-interest of a monopoly is to maximize its profit. To do so, a monopoly sets a price to achieve its selfinterested goal. As a result, a monopoly produces too little and underproduction results. ...