Chapter_7_Micro_13e_class_slides
... Refer back to your Chapter 3 notes and mentally combine them with Chapter 7 notes ...
... Refer back to your Chapter 3 notes and mentally combine them with Chapter 7 notes ...
Supply and Demand
... SUVs and trucks along with a reduction the crude oil prices that have resulted in a significant increase in the supply of gasoline. d. A new environmental law results in a significant increase in the cost of gasoline production. ...
... SUVs and trucks along with a reduction the crude oil prices that have resulted in a significant increase in the supply of gasoline. d. A new environmental law results in a significant increase in the cost of gasoline production. ...
FOR 451 ( FOREST RESOURCE ECONOMICS & QUANTITATIVE
... 4. Free entry of firms -- no barriers to entry to industry 5. Perfect information 6. Mobility of labor and capital 7. No unpriced negative side effects -- producers should pay for all costs 8. Priced inputs and outputs - all resources/outputs have a price 9. Satisfactory income distribution -- curre ...
... 4. Free entry of firms -- no barriers to entry to industry 5. Perfect information 6. Mobility of labor and capital 7. No unpriced negative side effects -- producers should pay for all costs 8. Priced inputs and outputs - all resources/outputs have a price 9. Satisfactory income distribution -- curre ...
Econ 387 In-Class Work: Negative External Market Effects on the
... Marginal Private Benefits (MPB) are the additional benefits derived by consumers from another unit of the product ⇒ Demand / consumer willingness to pay. Note that if these are the only benefits from this good (i.e.: no one outside the market participants benefits from its consumption), then private ...
... Marginal Private Benefits (MPB) are the additional benefits derived by consumers from another unit of the product ⇒ Demand / consumer willingness to pay. Note that if these are the only benefits from this good (i.e.: no one outside the market participants benefits from its consumption), then private ...
Rational Spending Rule
... • Maximize utility when the marginal utility per dollar spent is the same for all goods • No Money Left On the Table Principle – Current spending has marginal utility of a dollar spent on one good higher than the marginal utility of a dollar spent on the other good – Take a dollar away from the ...
... • Maximize utility when the marginal utility per dollar spent is the same for all goods • No Money Left On the Table Principle – Current spending has marginal utility of a dollar spent on one good higher than the marginal utility of a dollar spent on the other good – Take a dollar away from the ...
Economics and National Security: The Dangers of
... These circumstances and the soaring costs of the Vietnam War strengthened the position of Secretary of Defense Robert McNamara and his systems analysts. Defense economics thus shifted predominantly to a focus on budgeting and micro issues.2 As the Vietnam War wound down, however, it became clear tha ...
... These circumstances and the soaring costs of the Vietnam War strengthened the position of Secretary of Defense Robert McNamara and his systems analysts. Defense economics thus shifted predominantly to a focus on budgeting and micro issues.2 As the Vietnam War wound down, however, it became clear tha ...
Ethics and the Economics of Globalization
... essentially never constrained pareto efficient—taking into account costs of information --trade liberalization may lead to Pareto inferior outcomes (Newbery Stiglitz) --capital market liberalization increases risk and lowers welfare American corporate CEO’s pursuit of greed (stock options, IPO’s, et ...
... essentially never constrained pareto efficient—taking into account costs of information --trade liberalization may lead to Pareto inferior outcomes (Newbery Stiglitz) --capital market liberalization increases risk and lowers welfare American corporate CEO’s pursuit of greed (stock options, IPO’s, et ...
Chapter 8 - Monopoly and Imperfect Competition
... Changes in technology of production made possible under monopoly may lead to lower prices and higher output ...
... Changes in technology of production made possible under monopoly may lead to lower prices and higher output ...
PP Slides - Haas School of Business
... Marginal Revenue is related to shape of the Demand Curve. Intuition for two factors at work to sell additional unit of output. ...
... Marginal Revenue is related to shape of the Demand Curve. Intuition for two factors at work to sell additional unit of output. ...
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.