Inflation - Potomanto
... ◦ The issue is important because many government programs use the CPI to adjust for changes in the overall level of prices. ...
... ◦ The issue is important because many government programs use the CPI to adjust for changes in the overall level of prices. ...
Lab 17: Consumer and Producer Surplus
... Sometimes for the best motives, a government will interfere with the operation of the market process. For example price controls above the market can be imposed to insure the survival of marginal producers. The minimum wage and controls on cotton prices are two such examples. Also, prices can be kep ...
... Sometimes for the best motives, a government will interfere with the operation of the market process. For example price controls above the market can be imposed to insure the survival of marginal producers. The minimum wage and controls on cotton prices are two such examples. Also, prices can be kep ...
PDF version
... With the exception of the 40 therms, 100 therms, and 500 kWh price quotes, all eligible prices are converted to a price per normalized quantity. These prices are then used to estimate a price for a defined fixed quantity. The average price per kilowatt-hour represents the total bill divided by the k ...
... With the exception of the 40 therms, 100 therms, and 500 kWh price quotes, all eligible prices are converted to a price per normalized quantity. These prices are then used to estimate a price for a defined fixed quantity. The average price per kilowatt-hour represents the total bill divided by the k ...
Indirect Distributional Effects in Benefit
... It is well recognised that public policies - such as building of roads, imposition of taxes and tariffs, or provision of defence - generally disturb the equilibrium prices of both goods and factors. Virtually all works on benefit-cost analysis would recommend that the distributional consequences of ...
... It is well recognised that public policies - such as building of roads, imposition of taxes and tariffs, or provision of defence - generally disturb the equilibrium prices of both goods and factors. Virtually all works on benefit-cost analysis would recommend that the distributional consequences of ...
Profit Maximization Profit Maximization Profit
... determined by comparing marginal revenue and marginal cost. • Marginal cost is the additional cost of producing one more unit of output. • Marginal revenue is the additional revenue from selling one more unit of output. • Profit is maximized at the output level where marginal revenue and marginal co ...
... determined by comparing marginal revenue and marginal cost. • Marginal cost is the additional cost of producing one more unit of output. • Marginal revenue is the additional revenue from selling one more unit of output. • Profit is maximized at the output level where marginal revenue and marginal co ...
A Different View on Pricing
... --- Insert Figure 1 about here --As Figure 1 clearly shows, Monroe’s impact has grown over time. In fact, although much of his research was published decades ago, his research on how prices are processed was cited more times in the most recent year (2009) than in any earlier year. We think there are ...
... --- Insert Figure 1 about here --As Figure 1 clearly shows, Monroe’s impact has grown over time. In fact, although much of his research was published decades ago, his research on how prices are processed was cited more times in the most recent year (2009) than in any earlier year. We think there are ...
Dynamic Optimization Problems
... We start with an optimizing problem for an economic agent who has to decide each period how to allocate his resources between consumption commodities, which provide instantaneous utility, and capital commodities, which provide production in the next period. At this point we assume that this agent do ...
... We start with an optimizing problem for an economic agent who has to decide each period how to allocate his resources between consumption commodities, which provide instantaneous utility, and capital commodities, which provide production in the next period. At this point we assume that this agent do ...
Microeconomics
Microeconomics (from Greek prefix mikro- meaning ""small"") is a branch of economics that studies the behavior of individuals and firms in making decisions regarding the allocation of limited resources. Typically, it applies to markets where goods or services are bought and sold. Microeconomics examines how these decisions and behaviors affect the supply and demand for goods and services, which determines prices, and how prices, in turn, determine the quantity supplied and quantity demanded of goods and services.This is in contrast to macroeconomics, which involves the ""sum total of economic activity, dealing with the issues of growth, inflation, and unemployment."" Microeconomics also deals with the effects of national economic policies (such as changing taxation levels) on the aforementioned aspects of the economy. Particularly in the wake of the Lucas critique, much of modern macroeconomic theory has been built upon 'microfoundations'—i.e. based upon basic assumptions about micro-level behavior.One of the goals of microeconomics is to analyze market mechanisms that establish relative prices amongst goods and services and allocation of limited resources amongst many alternative uses. Microeconomics also analyzes market failure, where markets fail to produce efficient results, and describes the theoretical conditions needed for perfect competition. Significant fields of study in microeconomics include general equilibrium, markets under asymmetric information, choice under uncertainty and economic applications of game theory. Also considered is the elasticity of products within the market system.