1 Efficiency and equity 1 Efficiency and equity CH5 Efficiency and
... benefit to society of the last unit consumed equals the marginal cost to society of making the last unit available for consumption. ...
... benefit to society of the last unit consumed equals the marginal cost to society of making the last unit available for consumption. ...
3 Supply and Demand
... producers are willing to make and sell in the market. • In general, the higher the price of a good, the more producers will want to make. • Producers of products usually do not want to make goods that are selling at relatively low costs. • The Supply Curve on the next page shows this relationship: ...
... producers are willing to make and sell in the market. • In general, the higher the price of a good, the more producers will want to make. • Producers of products usually do not want to make goods that are selling at relatively low costs. • The Supply Curve on the next page shows this relationship: ...
MATH 119
... Ex 4: An apartment complex with 220 units can fill all units when the rent is $480 per month. It is estimated that for each $15 per month increase in rent, 5 units will become vacant. The complex has a fixed monthly costs of $60,000 and a maintenance cost of $60 for each unit rented. What monthly re ...
... Ex 4: An apartment complex with 220 units can fill all units when the rent is $480 per month. It is estimated that for each $15 per month increase in rent, 5 units will become vacant. The complex has a fixed monthly costs of $60,000 and a maintenance cost of $60 for each unit rented. What monthly re ...
Topic 1.3.1 to 1.3.4 Market Failure student version
... Candidates should be able to: • Distinguish between private, external and social costs and benefits • Illustrate: the external costs of production using marginal analysis; the distinction between market equilibrium & social optimum position; welfare loss • Illustrate: the external benefits of consum ...
... Candidates should be able to: • Distinguish between private, external and social costs and benefits • Illustrate: the external costs of production using marginal analysis; the distinction between market equilibrium & social optimum position; welfare loss • Illustrate: the external benefits of consum ...
Financial System
... Risk protection function. The financial markets offer protection against life, health, property, and income risks, by permitting individuals and institutions to engage in both risk-sharing and risk reduction. Policy function. The financial markets are a channel through which governments may attempt ...
... Risk protection function. The financial markets offer protection against life, health, property, and income risks, by permitting individuals and institutions to engage in both risk-sharing and risk reduction. Policy function. The financial markets are a channel through which governments may attempt ...
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.