Inelastic Supply
... and price. A change in price creates a change in the quantity supplied. This is movement along the supply curve, it is a positive slope curve and reflects a direct relationship. When the price goes up the quantity supplied goes up as well. A change in supply causes a shift of the entire supply curve ...
... and price. A change in price creates a change in the quantity supplied. This is movement along the supply curve, it is a positive slope curve and reflects a direct relationship. When the price goes up the quantity supplied goes up as well. A change in supply causes a shift of the entire supply curve ...
Chapter 15 Monopoly
... • Price discrimination is the business practice of selling the same good at different prices to different customers, even though the cost of production is the same for all customers. • What do you think of this practice? ...
... • Price discrimination is the business practice of selling the same good at different prices to different customers, even though the cost of production is the same for all customers. • What do you think of this practice? ...
Chapter 15 Monopoly
... • Price discrimination is the business practice of selling the same good at different prices to different customers, even though the cost of production is the same for all customers. • What do you think of this practice? ...
... • Price discrimination is the business practice of selling the same good at different prices to different customers, even though the cost of production is the same for all customers. • What do you think of this practice? ...
supply and demand
... For each of the following situations, identify which curve is affected and how it is affected (↑↓). ONLY ONE CURVE WILL MOVE. Record the determinant of supply or demand being described. Illustrate the effect on the graph. Label the original curves S1 / D1 – and label the new curve S2 or D2. Use ↑↓ a ...
... For each of the following situations, identify which curve is affected and how it is affected (↑↓). ONLY ONE CURVE WILL MOVE. Record the determinant of supply or demand being described. Illustrate the effect on the graph. Label the original curves S1 / D1 – and label the new curve S2 or D2. Use ↑↓ a ...
Lecture04 - UCSB Economics
... can derive a rational spending rule The rational spending rule: The marginal utility of the last dollar spent for each good is equal Exceptions exist when goods are indivisible (we will ignore this for now) ...
... can derive a rational spending rule The rational spending rule: The marginal utility of the last dollar spent for each good is equal Exceptions exist when goods are indivisible (we will ignore this for now) ...
Lecture slides Chap 5 and 7
... • Does the number of firms in an industry with constant marginal costs necessarily converge to infinity as the entry cost turns to zero? Explain. • Why are we interested in empirically estimating models of product differentiation? (After all, to understand the intensity of competition in the short r ...
... • Does the number of firms in an industry with constant marginal costs necessarily converge to infinity as the entry cost turns to zero? Explain. • Why are we interested in empirically estimating models of product differentiation? (After all, to understand the intensity of competition in the short r ...
ECON100 Sample Midte..
... allowed. For instance, if there are some substitutes like apple juice and mango juice available; consumers would switch to them when the price of orange juice increases. So, the price elasticity of demand for orange juice would be high. On the other hand, the elasticity of supply depends mainly on r ...
... allowed. For instance, if there are some substitutes like apple juice and mango juice available; consumers would switch to them when the price of orange juice increases. So, the price elasticity of demand for orange juice would be high. On the other hand, the elasticity of supply depends mainly on r ...
2 pts - Cloudfront.net
... Draw a monopoly making a profit. Label unregulated price, profit, Daily Double consumer surplus, producer surplus, dead weight loss ...
... Draw a monopoly making a profit. Label unregulated price, profit, Daily Double consumer surplus, producer surplus, dead weight loss ...
ECN 112 Chapter 14 Lecture Notes
... 1. With perfect price discrimination, the firm produces the same quantity of output as perfect competition, so there is no deadweight loss. There is an efficient outcome in terms of production, but the firm ends up with all of the producer and consumer surplus. 2. Rent seeking uses up the entire pro ...
... 1. With perfect price discrimination, the firm produces the same quantity of output as perfect competition, so there is no deadweight loss. There is an efficient outcome in terms of production, but the firm ends up with all of the producer and consumer surplus. 2. Rent seeking uses up the entire pro ...
Ch15_Monopolistic Competition
... B) monopolistic C) monopolistically competitive D) oligopolistic Answer: C 2) A monopolistically competitive industry has all of the following characteristics EXCEPT: A) there are no barriers to entry. B) strategic behavior. C) product differentiation. D) a large number of firms. Answer: B 3) A(n) _ ...
... B) monopolistic C) monopolistically competitive D) oligopolistic Answer: C 2) A monopolistically competitive industry has all of the following characteristics EXCEPT: A) there are no barriers to entry. B) strategic behavior. C) product differentiation. D) a large number of firms. Answer: B 3) A(n) _ ...
Short Run Supply Curve (SRSC)
... SFC is the cost of the firm’s fixed input that are unavoidable at q = 0 Output insensitive for q > 0 = Sunk NSFC is the cost of the firm’s inputs that are avoidable if the firm produces zero (salaries of some employees, for example) Output insensitive for q > 0 = Non-sunk ...
... SFC is the cost of the firm’s fixed input that are unavoidable at q = 0 Output insensitive for q > 0 = Sunk NSFC is the cost of the firm’s inputs that are avoidable if the firm produces zero (salaries of some employees, for example) Output insensitive for q > 0 = Non-sunk ...
Externality
In economics, an externality is the cost or benefit that affects a party who did not choose to incur that cost or benefit.For example, manufacturing activities that cause air pollution impose health and clean-up costs on the whole society, whereas the neighbors of an individual who chooses to fire-proof his home may benefit from a reduced risk of a fire spreading to their own houses. If external costs exist, such as pollution, the producer may choose to produce more of the product than would be produced if the producer were required to pay all associated environmental costs. Because responsibility or consequence for self-directed action lies partly outside the self, an element of externalization is involved. If there are external benefits, such as in public safety, less of the good may be produced than would be the case if the producer were to receive payment for the external benefits to others. For the purpose of these statements, overall cost and benefit to society is defined as the sum of the imputed monetary value of benefits and costs to all parties involved. Thus, unregulated markets in goods or services with significant externalities generate prices that do not reflect the full social cost or benefit of their transactions; such markets are therefore inefficient.