Efficiency - Universitas Sebelas Maret
... determine what ought to be. • Welfare economics – the study of how the allocation of resources affects economic well-being. ...
... determine what ought to be. • Welfare economics – the study of how the allocation of resources affects economic well-being. ...
Lecture 6: Market Structure – Perfect Competition
... The interpretation of the LR supply curve is pretty much the same as the SR supply curve: it shows the willingness of producers to sell at each price. But the LR supply curve measures this willingness in the broadest sense, including all firms that might potentially supply this product. Notice that ...
... The interpretation of the LR supply curve is pretty much the same as the SR supply curve: it shows the willingness of producers to sell at each price. But the LR supply curve measures this willingness in the broadest sense, including all firms that might potentially supply this product. Notice that ...
Perfect Competition in the Long Run
... $200,000 (the example we used above). For the individual company, the price and the marginal revenue will now equal $200,000. The horizontal line (price equals marginal revenue) shifts up from $180,000 to $200,000. To maximize profits, the company will produce where the new marginal revenue equals t ...
... $200,000 (the example we used above). For the individual company, the price and the marginal revenue will now equal $200,000. The horizontal line (price equals marginal revenue) shifts up from $180,000 to $200,000. To maximize profits, the company will produce where the new marginal revenue equals t ...
Demand - Gore High School
... The law of demand • As the price increases, the quantity demanded decreases, vice versa, ceteris paribus ...
... The law of demand • As the price increases, the quantity demanded decreases, vice versa, ceteris paribus ...
utlity and demand 1 Ch 7 Utility and Demand I. Household
... b) To restore consumer equilibrium (and thereby maximize his or her total utility) the consumer increases the quantity of movies consumed, which decreases the MUM. Eventually the quantity of movies increases enough so that MUM/PM = MUS/PS. ...
... b) To restore consumer equilibrium (and thereby maximize his or her total utility) the consumer increases the quantity of movies consumed, which decreases the MUM. Eventually the quantity of movies increases enough so that MUM/PM = MUS/PS. ...
CHAPTER 7
... INEFFICIENCY is created because it is possible to increase production so that the benefits (measured by P) to consumers are larger than the costs (equal to MC) to the producers. 1. Since monopolists cause economic inefficiency, monopolies can harm society. MONOPOLY RENT SEEKING—expenditures designed ...
... INEFFICIENCY is created because it is possible to increase production so that the benefits (measured by P) to consumers are larger than the costs (equal to MC) to the producers. 1. Since monopolists cause economic inefficiency, monopolies can harm society. MONOPOLY RENT SEEKING—expenditures designed ...
Ap Econ Chap 4 - mrski-apecon-2008
... If you were a pizza seller and cheese costs more than before. Then your basically in trouble! Because cheese is more expensive you would choose not to sell as much as before! ...
... If you were a pizza seller and cheese costs more than before. Then your basically in trouble! Because cheese is more expensive you would choose not to sell as much as before! ...
AEC1101 INTRODUCTORY MICROECONOMICS
... of objective-constraint-choice, markets, The logic of consumer choice, Utility theory, consumer equilibrium and demand, Budget constraints and Indifference curve Analysis, The budget constraint, indifference curves, the indifference map and budget constraint come together, Elasticity, Why firms exis ...
... of objective-constraint-choice, markets, The logic of consumer choice, Utility theory, consumer equilibrium and demand, Budget constraints and Indifference curve Analysis, The budget constraint, indifference curves, the indifference map and budget constraint come together, Elasticity, Why firms exis ...
Slide
... • No matter how many goods there are to choose from, when the consumer is doing as well as possible – It must be true that MUX / PX = MUY / PY for any pair of goods x and y – If this condition is not satisfied, consumer will be better off consuming more of one and less of the other good in the pair ...
... • No matter how many goods there are to choose from, when the consumer is doing as well as possible – It must be true that MUX / PX = MUY / PY for any pair of goods x and y – If this condition is not satisfied, consumer will be better off consuming more of one and less of the other good in the pair ...
Chapter 10 Market structure and imperfect competition
... • The essence of an oligopolistic industry is the need for each firm to consider how its own actions affect the decisions of its relatively few competitors. • Oligopoly may be characterised by collusion or by non-co-operation. ...
... • The essence of an oligopolistic industry is the need for each firm to consider how its own actions affect the decisions of its relatively few competitors. • Oligopoly may be characterised by collusion or by non-co-operation. ...
L9-consumer econ
... The Law of Diminishing Marginal Utility The tendency for the additional utility gained from consuming an additional unit of a good to diminish as consumption increases beyond some point What happens if you assume this is not true? ...
... The Law of Diminishing Marginal Utility The tendency for the additional utility gained from consuming an additional unit of a good to diminish as consumption increases beyond some point What happens if you assume this is not true? ...
relative
... 1. Numerical value has “units” attached. -- can’t compare across goods measured in different units. -- can get any numerical value you want just by changing units. 2. The slope (or its reciprocal) involves an implicit comparison (ratio) of absolute changes. -- may not be very informative. ...
... 1. Numerical value has “units” attached. -- can’t compare across goods measured in different units. -- can get any numerical value you want just by changing units. 2. The slope (or its reciprocal) involves an implicit comparison (ratio) of absolute changes. -- may not be very informative. ...
ECO1000 Economics - University of Southern Queensland
... Latin phrase meaning “other things equal”. We use it in economics when we want to indicate that the change (in a curve or number) occurs in isolation. Example: when income rises, we say demand rises (for a normal good), Ceteris Paribus. That is, nothing else is happening to offset the change we are ...
... Latin phrase meaning “other things equal”. We use it in economics when we want to indicate that the change (in a curve or number) occurs in isolation. Example: when income rises, we say demand rises (for a normal good), Ceteris Paribus. That is, nothing else is happening to offset the change we are ...
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.