EFL Lesson 2 - Foundation for Teaching Economics
... As long as the marginal benefit of an activity exceeds the marginal cost, people are better off doing more of it. When the marginal cost exceeds the marginal benefit, they are better off doing less of it. Past costs are called “sunk” costs. The sunk cost fallacy occurs when people fail to recogn ...
... As long as the marginal benefit of an activity exceeds the marginal cost, people are better off doing more of it. When the marginal cost exceeds the marginal benefit, they are better off doing less of it. Past costs are called “sunk” costs. The sunk cost fallacy occurs when people fail to recogn ...
Document
... The demand curve is the Marginal Benefit curve. MB or MSB An example would be pollution. So what do you do? You put a per unit tax. Shifts supply to the left. You could also put quantity restrictions, an effective price ceiling, or pollution permits. If the good has a benefit to individuals who are ...
... The demand curve is the Marginal Benefit curve. MB or MSB An example would be pollution. So what do you do? You put a per unit tax. Shifts supply to the left. You could also put quantity restrictions, an effective price ceiling, or pollution permits. If the good has a benefit to individuals who are ...
File
... The demand curve is the Marginal Benefit curve. MB or MSB An example would be pollution. So what do you do? You put a per unit tax. Shifts supply to the left. You could also put quantity restrictions, an effective price ceiling, or pollution permits. If the good has a benefit to individuals who are ...
... The demand curve is the Marginal Benefit curve. MB or MSB An example would be pollution. So what do you do? You put a per unit tax. Shifts supply to the left. You could also put quantity restrictions, an effective price ceiling, or pollution permits. If the good has a benefit to individuals who are ...
Perfectly Competitive Markets
... busy there is no reason to lower the price, but if it raises its price by 10 cents a gallon, it will have almost no customers. We will study the extreme case of perfect competition, where firms are “price takers.” ...
... busy there is no reason to lower the price, but if it raises its price by 10 cents a gallon, it will have almost no customers. We will study the extreme case of perfect competition, where firms are “price takers.” ...
Slides - Stephen Kinsella
... In order to maximize profits, a firm should produce that output level for which the marginal revenue from selling one more unit of output is exactly equal to the marginal cost of producing ...
... In order to maximize profits, a firm should produce that output level for which the marginal revenue from selling one more unit of output is exactly equal to the marginal cost of producing ...
Solutions to Problems
... Profit is maximized when the firm produces the output at which marginal cost equals marginal revenue which is at 150 newspapers a day in figure 3. 5b. The price charged is 70 cents a paper. The highest price that the publisher can sell 150 newspapers a day is read from the demand curve in figure 3. ...
... Profit is maximized when the firm produces the output at which marginal cost equals marginal revenue which is at 150 newspapers a day in figure 3. 5b. The price charged is 70 cents a paper. The highest price that the publisher can sell 150 newspapers a day is read from the demand curve in figure 3. ...
Homework 3
... (a) Consider period t = 2. Fix the first period type, θ. Assume in period 2 that the lowtype’s (IR) constraint binds, the high type’s (IC) constraint binds and we can ignore the other constraints. Characterise the second period rents obtained by the agents, UθL and UθH , as a function of {qLL , qLH ...
... (a) Consider period t = 2. Fix the first period type, θ. Assume in period 2 that the lowtype’s (IR) constraint binds, the high type’s (IC) constraint binds and we can ignore the other constraints. Characterise the second period rents obtained by the agents, UθL and UθH , as a function of {qLL , qLH ...
1. The marginal product of labor is defined as the change in a
... The least-cost rule states that: when determining the least costly combination of two factors of production a. a firm should always employ more labor than capital due to the short-term flexibility of labor costs. b. a firm should use a combination of factors wherein the ratio of the MP to the P of o ...
... The least-cost rule states that: when determining the least costly combination of two factors of production a. a firm should always employ more labor than capital due to the short-term flexibility of labor costs. b. a firm should use a combination of factors wherein the ratio of the MP to the P of o ...
