Determinants of Price Elasticity of Demand... Error! Bookmark not defined. Cross-Price Elasticity of Demand... Error! Bookmark not defined.
|
|
- Ginger Melton
- 5 years ago
- Views:
Transcription
1 ECON1101 Summary I Intro to Microeconomics... 5 Supply and Demand... 6 Price Controls... Error! Bookmark not Price Elasticity of Demand... Error! Bookmark not εd = % QD% P = 1slope PQD... Error! Bookmark not Determinants of Price Elasticity of Demand... Error! Bookmark not Cross-Price Elasticity of Demand... Error! Bookmark not εxy = % QxD% Py... Error! Bookmark not Income Elasticity of Demand... Error! Bookmark not εi = % QD% I... Error! Bookmark not Price Elasticity of Supply... Error! Bookmark not εs = % QS% P... Error! Bookmark not Consumer Behaviour Individual Demand... Error! Bookmark not Consumer Surplus... Error! Bookmark not Consumer Behaviour Budget Line... Error! Bookmark not Understanding the Law of Demand, Income and Substitution... Error! Bookmark not Preferences and Utility... Error! Bookmark not Market Demand and Market Supply... Error! Bookmark not Firms... Error! Bookmark not Marginal Product of Labour (MP L )... Error! Bookmark not Marginal Cost (MC)... Error! Bookmark not Individual Firm Demand... Error! Bookmark not Sunk Costs... Error! Bookmark not Marginal Revenue (MR)... Error! Bookmark not Producer Surplus (PS)... Error! Bookmark not Surplus Summary... Error! Bookmark not Deadweight Loss or Excess Burden... Error! Bookmark not Pareto Efficiency... Error! Bookmark not Informational Advantage of Price Mechanism... Error! Bookmark not Efficiency vs. Equity... Error! Bookmark not Impact of Excise Tax... Error! Bookmark not Economic incidence of tax, who bears it?... Error! Bookmark not 1
2 Costs in the Short Run... Error! Bookmark not Short Run Cost Measures... Error! Bookmark not Total Costs = Fixed Costs + Variable Costs... Error! Bookmark not Marginal Costs (MC) = C Q = TC Q, TC = VC.... Error! Bookmark not Average Fixed Cost (AFC) = Fixed CostQuantity... Error! Bookmark not Average Variable Cost (AVC) = Variable CostQuantity... Error! Bookmark not Average Total Cost (ATC) = Total CostQuantity... Error! Bookmark not i.e. Average Total Cost (ATC) = AFC + AVC... Error! Bookmark not Relationship between MC and AVC (ATC)... Error! Bookmark not A typical MC, AVC & ATC graph.... Error! Bookmark not Economic Costs vs. Accounting Costs... Error! Bookmark not Explicit Costs... Error! Bookmark not Implicit Costs... Error! Bookmark not Accounting Profit... Error! Bookmark not Economic Profit... Error! Bookmark not Average Revenue (AR) = Total RevenueQuantity = (P Q)Q = P, the market price.... Error! Bookmark not Profits, Costs, and Production for Price Taking Firms in SR... Error! Bookmark not Profits = Revenues Total Costs... Error! Bookmark not Break-even Point... Error! Bookmark not Shut-down Point... Error! Bookmark not Costs and Production in LR... Error! Bookmark not ATC LR = TCLRQ... Error! Bookmark not MC LR = TCLR Q... Error! Bookmark not Price-Taking Firm in the Long Run... Error! Bookmark not Returns to Scale... Error! Bookmark not Increasing returns to scale:... Error! Bookmark not Constant returns to scale:... Error! Bookmark not Decreasing returns to scale:... Error! Bookmark not Economies of Scale... Error! Bookmark not Diseconomies of Scale... Error! Bookmark not Economies of Scale... Error! Bookmark not Set-up costs... Error! Bookmark not Economies of scope... Error! Bookmark not Implicit Cost of Capital... Error! Bookmark not Entry and Exit of Firms... Error! Bookmark not When will new firms enter the industry?... Error! Bookmark not When will existing firms exit an industry?... Error! Bookmark not How the long-run equilibrium is maintained... Error! Bookmark not In the Short Run... Error! Bookmark not In the Long Run... Error! Bookmark not In Overview... Error! Bookmark not Consider a decrease in demand... Error! Bookmark not Shifts in Cost Curves (p. 237)... Error! Bookmark not Average Total Cost is Minimised... Error! Bookmark not 2
3 Efficient Allocation of Capital among Industries... Error! Bookmark not Constant-Cost Industry... Error! Bookmark not External Diseconomies of Scale... Error! Bookmark not External Economies of Scale... Error! Bookmark not Monopoly... Error! Bookmark not Sources of Monopoly... Error! Bookmark not Profit-Maximising Monopolist... Error! Bookmark not Price Discrimination (PD)... Error! Bookmark not First Degree Price Discrimination... Error! Bookmark not Analysing the surplus of the non-discriminating monopolist... Error! Bookmark not Analysing the surplus of discriminating monopolist... Error! Bookmark not Second Degree Price Discrimination... Error! Bookmark not Third Degree Price Discrimination... Error! Bookmark not Types of Market Structure... Error! Bookmark not Product differentiation... Error! Bookmark not How are products differentiated?... Error! Bookmark not Monopolistically competitive industry (MC)... Error! Bookmark not Short Run Situations for monopolistically competitive industries.. Error! Bookmark not How long-run equilibrium looks for monopolistic competition... Error! Bookmark not Note: Demand curve is tangent to ATC curve, P* = ATC (at Q*)... Error! Bookmark not Two characteristics of LR equilibrium for MC industry... Error! Bookmark not Compared to perfect competition... Error! Bookmark not Strategic Behaviour/Interaction... Error! Bookmark not Explained with the Prisoner s Dilemma... Error! Bookmark not Prisoner s Dilemma... Error! Bookmark not Dominant Strategy... Error! Bookmark not Nash Equilibrium Strategy... Error! Bookmark not Incentives to Cooperate: Repeated Games... Error! Bookmark not Grim Strategy... Error! Bookmark not Oligopolies... Error! Bookmark not Duopoly... Error! Bookmark not Approach perfectly competitive outcomes as more firms compete.... Error! Bookmark not Payoff Matrix - Duopoly... Error! Bookmark not Advertising Prisoner s Dilemma... Error! Bookmark not Payoff Matrix Advertising Prisoner s Dilemma... Error! Bookmark not Labour Demand... Error! Bookmark not Marginal product of labour (MP L)... Error! Bookmark not Marginal revenue product of labour (MRP L)... Error! Bookmark not Input demand is linked to output supply... Error! Bookmark not Labour Supply (L S )... Error! Bookmark not Substitution effect: w L S... Error! Bookmark not Income effect: w L S... Error! Bookmark not 3
4 Demand for Physical Capital... Error! Bookmark not Marginal Product of Capital (MP K)... Error! Bookmark not As K MP K : Diminishing returns to capital.... Error! Bookmark not Marginal Revenue Product of Capital (MRP K)... Error! Bookmark not MRP K = P * MP K... Error! Bookmark not MRP K = r... Error! Bookmark not Implicit rental price or user cost of capital = Depreciation Cost + Interest Cost... Error! Bookmark not Implicit rental rate = Implicit Rental Price / Price of Capital... Error! Bookmark not i implicit rental rate K D (demand for physical capital). Error! Bookmark not Return on stocks = Dividend + Capital Gain/Loss... Error! Bookmark not Rate of return on stock = Return on Stock / Share Price.. Error! Bookmark not Present Discounted Value / Time Value of Money... Error! Bookmark not Risk vs. Expected Return... Error! Bookmark not Efficient Market Hypothesis... Error! Bookmark not Average and Marginal Tax Rate... Error! Bookmark not Australian Individual Income Tax Rates Error! Bookmark not Average Tax Rate = Tax / Income... Error! Bookmark not Marginal Tax Rate = The last tax rate... Error! Bookmark not Progressive Tax... Error! Bookmark not Excise Tax... Error! Bookmark not Analogy for individual income tax... Error! Bookmark not Economic incidence of tax... Error! Bookmark not Transfers and Work Disincentives... Error! Bookmark not Minimum Income Guarantee (Disincentive)... Error! Bookmark not Extreme case of The Poverty Trap... Error! Bookmark not Less extreme case... Error! Bookmark not Externalities... Error! Bookmark not Negative Externality... Error! Bookmark not Positive Externality... Error! Bookmark not Pigouvian emissions tax... Error! Bookmark not Coase Theorem... Error! Bookmark not Property Rights... Error! Bookmark not Example... Error! Bookmark not Setting... Error! Bookmark not What would be best for F?... Error! Bookmark not Corrective actions for externality... Error! Bookmark not Assignment of Property Rights... Error! Bookmark not Bargaining Outcome... Error! Bookmark not Characteristics of Goods... Error! Bookmark not Rival Goods... Error! Bookmark not Non-rival Goods... Error! Bookmark not Excludable Goods... Error! Bookmark not Non-excludable Goods... Error! Bookmark not Types of Goods... Error! Bookmark not Private Goods: Both excludable and rival.... Error! Bookmark not Public Goods: Neither excludable nor rival.... Error! Bookmark not 4
5 Common Resources: Rival but non-excludable.... Error! Bookmark not Efficient Provision of Public Goods... Error! Bookmark not For Private Goods... Error! Bookmark not For Public Goods... Error! Bookmark not Free Rider... Error! Bookmark not Tragedy of the Commons (Common Resources)... Error! Bookmark not Potential Solutions... Error! Bookmark not Other Common Resource Examples:... Error! Bookmark not Comparative Advantage recap... Error! Bookmark not Opportunity Cost (w/o trade)... Error! Bookmark not Production Possibilities Curve (w/o trade)... Error! Bookmark not World Production Possibilities Curve... Error! Bookmark not Wage Costs and Trade... Error! Bookmark not Reasons for Comparative Advantage... Error! Bookmark not Dynamic Comparative Advantage... Error! Bookmark not Economic Arguments for International Trade... Error! Bookmark not Intra-Industry Trade... Error! Bookmark not Why is there intra-industry trade?... Error! Bookmark not Market Equilibrium Without Trade... Error! Bookmark not World Price... Error! Bookmark not Small Economy... Error! Bookmark not Exporting Country... Error! Bookmark not Price effects with the new and higher world price... Error! Bookmark not Importing Country... Error! Bookmark not Price effects:... Error! Bookmark not Why opposition to trade, e.g. imports?... Error! Bookmark not Tariffs/Customs Duties... Error! Bookmark not Price effects with new higher price... Error! Bookmark not Quota... Error! Bookmark not Impact on supply curve... Error! Bookmark not Price effects... Error! Bookmark not Arguments for Trade Barriers... Error! Bookmark not Intro to Microeconomics Positive vs. Normative Analysis: Positive economics is objective and fact based while normative economics is subjective and value based. Resources are finite (scarce). Wants are unlimited, want more or better. Choices must be made. (Opportunity Cost) Thinking on the margin: Rational to take action if the marginal (additional) benefit exceeds the marginal cost. Voluntary exchange is mutually advantageous; this is only a reallocation of goods. Absolute advantage: Where a person/country is more efficient in producing a good compared to another person or country. 5
6 Comparative advantage: Where a person or country can produce one good more efficiently relative to another good (lower O.C.) compared to another person or country. PPC (Production Possibilities Curve) U.S. Movies PCs O.C. of last 100 movies produced (PCs foregone) 0 25,000 N/A ,000 1, ,000 2, ,000 4, ,000 5, ,000 PPC shows maximum combinations of two goods that are possible given the economy s resources and level of technology. Producing more capital goods today allows more economical growth and greater production possibilities tomorrow. Supply and Demand Law of Demand: Price and quant. demanded negatively related ceteris paribus. Preference (Population) é, Demand é Negative Information é, Demand ê Income é, Demand é (Opposite for inferior goods) Population é, Demand é Expectation of future price is rising, Demand é Expectation of future price is falling, Demand ê Price of closely related substitute é, Demand é 6
7 Price of closely related complement é, Demand ê Movement along the demand curve: quantity demanded changes as a result of change in price of good. Shift of demand curve: occurs when a change is caused in any source but the price, causing the whole curve to shift left or right. Demand Schedule: Table of prices and quantity demanded for a good at different prices, ceteris paribus. Law of Supply: Price and quantity supplied are positively related. Technology (anything that can change the amount a firm can produce with a given amount of inputs to production) é, Supply é Weather Conditions (consider negative effects) é, Supply ê Price of Inputs used in Production é, Supply ê Number of Firms in the Market é, Supply é Expectations of Future Prices é, Supply ê Gov. Taxes é, Supply ê Gov. Subsidies é, Supply é Gov. Regulations, case to case basis. Supply curve slopes upward because ceteris paribus, a higher price offers greater incentive for a firm to produce and sell more goods. Supply Schedule: Table of prices and quantity supplied for a good at different prices, ceteris paribus. Excess demand or shortage when Q D > Q S, P will rise as consumers will pay more to have a competitive advantage over other consumers. Excess supply or surplus when Q D < Q S, P will fall as producers want to sell off their surplus and lower price for incentive for consumers to buy. Market Equilibrium: Q D = Q S, price will be stable. Given scarcity and choice, a society must decide: 1. What goods are produced and how much. 2. How these goods are produced. 3. For whom are they produced for. 7
Econ 323 Microeconomic Theory. Practice Exam 2 with Solutions
Econ 323 Microeconomic Theory Practice Exam 2 with Solutions Chapter 10, Question 1 Which of the following is not a condition for perfect competition? Firms a. take prices as given b. sell a standardized
More informationEcon 323 Microeconomic Theory. Chapter 10, Question 1
Econ 323 Microeconomic Theory Practice Exam 2 with Solutions Chapter 10, Question 1 Which of the following is not a condition for perfect competition? Firms a. take prices as given b. sell a standardized
More informationNorthridge Local Schools 9 12 Social Studies Course of Study. Length: ½ year Credit: ½
Northridge Local Schools 9 12 Social Studies Course of Study Course: Economics and Financial Literacy Grade Level: 10 12 Course Description: Length: ½ year Credit: ½ This course explores the fundamentals
More informationECON 102 Boyle Final Exam New Material Practice Exam Solutions
www.liontutors.com ECON 102 Boyle Final Exam New Material Practice Exam Solutions 1. B Please note that these first four problems are likely much easier than problems you will see on the exam. These problems
More informationDEMAND AND SUPPLY ANALYSIS: THE FIRM
DEMAND AND SUPPLY ANALYSIS: THE FIRM 1 2. OBJECTIVES OF THE FIRM Profit = Total revenue Total cost Total Revenue: Amount received by a firm from sale of its output. Total Cost: Market value of the inputs
More informationInduction Course Microeconomics
Induction Course Microeconomics The lectures will provide a fairly rapid revision of basic concepts from microeconomics. If you do not fully understand any of the concepts covered in the lectures then
More informationProf. Ergin Bayrak Spring Homework 2
Econ 203 Prof. Ergin Bayrak Spring 2014 Name: TA: Homework 2 PART I - MULTIPLE CHOICE QUESTIONS 1. Based on the figure below, assuming there are no fixed costs, the firm s marginal product curve slopes
More informationECS ExtraClasses Helping you succeed. Page 1
Page 1 ECS 1501 Oct/Nov 2014 Exam Recommended Answers 1. 2 2. 2 3. 2 4. 4 5. 1, a movement along the PPC involves an opportunity cost, to produce more of one good the firm has to produce less of the other
More informationModel Question Paper Economics - I (MSF1A3)
Model Question Paper Economics - I (MSF1A3) Answer all 7 questions. Marks are indicated against each question. 1. Which of the following statements is/are not correct? I. The rationality on the part of
More informationFoundations of Economics 5 th Edition, AP Edition 2011
A Correlation of 5 th Edition, AP Edition 2011 Advanced Placement Microeconomics and Macroeconomics Topics AP is a trademark registered and/or owned by the College Board, which was not involved in the
More informationINDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT Social Studies Curriculum - May 2009 AP Economics
Course Description: This full-year college-level course begins with basic economic concepts and proceeds to examine both microeconomics and macroeconomics in greater detail. There are five units which
More informationEconomics 101 Section 5
Economics 101 Section 5 Lecture #13 February 26, 2004 Production costs in the short run Outline Explain some of HW#5 Recap from last lecture Short-run vs long-run production Fixed inputs Variable inputs
More informationThe Big Picture. Introduction: A Scenario. The Revenue of a Competitive Firm. Firms in Competitive Markets
Firms in Competitive Markets R I N C I L E S O F ECONOMICS F O U R T H E D I T I O N N. G R E G O R Y M A N K I W remium oweroint Slides by Ron Cronovich 8 update Modified by Joseph Tao-yi Wang 8 South-Western,
More informationFoundations of Economics 5 th Edition, AP*Edition 2011
A Correlation of 5 th Edition, AP*Edition 2011 To the Advanced Placement Topics Microeconomics and Macroeconomics *Advanced Placement, Advanced Placement Program, AP, and Pre-AP are registered trademarks
More informationAnswer Key Unit 1: Microeconomics
Answer Key Unit 1: Microeconomics Module 1: Methodology: Demand and Supply 1.1.1 The Central Problem of Economics 1 C 2 B For every 3 windows made, 15 gates are given up. This means that when 1 window
More informationCompetitive Firms in the Long-Run
Competitive Firms in the Long-Run EC 311 - Selby May 18, 2014 EC 311 - Selby Competitive Firms in the Long-Run May 18, 2014 1 / 20 Recap So far we have been discussing the short-run for competitive firms
More informationUnit 3: Costs of Production and Perfect Competition
Unit 3: Costs of Production and Perfect Competition 1 Inputs and Outputs To earn profit, firms must make products (output) Inputs are the resources used to make outputs. Input resources are also called
More informationEconomics. Firms in Competitive Markets 11/29/2013. Introduction: A Scenario. The Big Picture. Competitive Market Experiment
N. Gregory Mankiw rinciples of Economics Sixth Edition Firms in Competitive Markets Modified by Joseph Tao-yi Wang remium oweroint Slides by Ron Cronovich The Big icture Chapter : The cost of production
More informationFirms in Competitive Markets. Chapter 14
Firms in Competitive Markets Chapter 14 The Meaning of Competition u A perfectly competitive market has the following characteristics: u There are many buyers and sellers in the market. u The goods offered
More informationEconomics Introduction: A Scenario. The Revenue of a Competitive Firm. Characteristics of Perfect Competition
C H A T E R Firms in Competitive Markets E RINCILES OF Economics I N. Gregory Mankiw remium oweroint Slides by Ron Cronovich 009 South-Western, a part of Cengage Learning, all rights reserved In this chapter,
More informationDownloaded from
XII ECONOMICS SURE SHOT SHORT ANSWER QUESTIONS MICROECONOMICS UNIT - INTRODUCTION Q. Distinguish between microeconomics and macroeconomics. 3 Q.2 Discuss the central problems of an economy. Why do they
More informationECONOMICS EXAMINATION OBJECTIVES
ECONOMICS EXAMINATION OBJECTIVES The following objectives of the examination are to test whether the candidates have acquired a basic understanding of economics with special emphasis on Hong Kong conditions
More informationLecture 9: Supply in a Competitive Market
Lecture 9: Supply in a Competitive Market October 27, 2015 Overview Course Administration Ripped From Headlines Market Structure and Perfect Competition in the Short Run Profit Maximization in a Competitive
More informationECON/MGMT 115. Industrial Organization
ECON/MGMT 115 Industrial Organization 1. Cournot Model, reprised 2. Bertrand Model of Oligopoly 3. Cournot & Bertrand First Hour Reviewing the Cournot Duopoloy Equilibria Cournot vs. competitive markets
More informationIntroduction: A scenario. Firms in Competitive Markets. In this chapter, look for the answers to these questions:
14 Firms in Competitive Markets R I N C I L E S O F ECONOMICS FOURTH EDITION N. GREGORY MANKIW oweroint Slides by Ron Cronovich 2006 Thomson South-Western, all rights reserved In this chapter, look for
More informationWORKSHEET. 1. Define micro economics. (1) 2. What do you mean by scarcity of resources? (1) 3. Define MRT. (1) 4. Define opportunity cost.
Marks : 30 WORKSHEET 1. Define micro economics. (1) 2. What do you mean by scarcity of resources? (1) 3. Define MRT. (1) 4. Define opportunity cost. (1) 5. Define PPF. (1) 1 [XII Economics] 6. Explain
More informationCable TV
www.liontutors.com ECON 102 Wooten Exam 2 Practice Exam Solutions 1. Excludable Non-excludable Rival Private goods: Food, furniture Common pool goods: Hunting Non-rival Club goods: Cable TV Public goods:
More informationG.C.E. (A.L.) Support Seminar- 2016
G.C.E. (A.L.) Support Seminar- 2016 Economics I Two hours Instructions : Answer all the questions. In each of the questions 1 to 50, pick one of the alternatives from (1), (2), (3), (4) and (5), which
More informationDESIGN OF QUESTION PAPER ECONOMICS Class - XII. 1. Weightage by types of questions Type Number of Marks Total Estimated
DESIGN OF QUESTION PAPER ECONOMICS Class - XII Marks - 100 Duration - 3 hrs. 1. Weightage by types of questions Type Number of Marks Total Estimated questions time a candidate is expected to take to answer
More informationWorld Class Education
World Class Education www.kean.edu By Paul Suozzo Assistant Professor of Bus. Studies Ocean County College 1. Introduction 2. Markets 3. Consumer Theory 4. Costs of Production 5. Competition 6. Monopoly
More informationA Perfectly Competitive Market. A perfectly competitive market is one in which economic forces operate unimpeded.
Perfect Competition A Perfectly Competitive Market A perfectly competitive market is one in which economic forces operate unimpeded. A Perfectly Competitive Market A perfectly competitive market must meet
More informationUNIT 6. Pricing under different market structures. Perfect Competition
UNIT 6 ricing under different market structures erfect Competition Market Structure erfect Competition ure Monopoly Monopolistic Competition Oligopoly Duopoly Monopoly The further right on the scale, the
More informationANSWERS To next 16 Multiple Choice Questions below B B B B A E B E C C C E C C D B
1 ANSWERS To next 16 Multiple Choice Questions below 1 2 3 4 5 6 7 8 9 1 11 12 13 14 15 16 B B B B A E B E C C C E C C D B 1. Economic Profits: a) are defined as profits made because a firm makes economical
More informationOUTLINE September 20, Revisit: Burden of a Tax. Firms Supply Decisions 9/19/2017 1:27 PM. Burden & quantity effect Depend on Price-Elasticity
OUTLINE September 20, 2017 Elasticity, Burden of a Tax, continued Firms Supply Decisions Accounting vs Economic Profit Long Run and Short Run Decisions Diminishing Marginal Returns Costs of Production
More informationECON191. FINAL EXAM REVISION WORKSHOP Semester One, 2013
ECON191 FINAL EXAM REVISION WORKSHOP Semester One, 2013 Drawing monopoly curve and understanding its components Looking at long-run monopolistic competition and inefficiency Oligopoly in practice game
More informationPostgraduate Diploma in Marketing June 2012 Examination Specimen Paper Economic and Legal Impact Paper I (Econ)
Postgraduate Diploma in Marketing June 2012 Examination Specimen Paper Economic and Legal Impact Paper I (Econ) Date: ** ** **** Time: 1400 Hrs 1700 Hrs Duration: Three (03) Hrs Total marks for this paper
More informationStatic Games and Cournot. Competition
Static Games and Cournot Introduction In the majority of markets firms interact with few competitors oligopoly market Each firm has to consider rival s actions strategic interaction in prices, outputs,
More informationTest 1 Econ 5000 Spring 2002 Dr. Rupp (Keep your answers covered. Bubble in name and id#)
Test 1 Econ 5000 Spring 2002 Dr. Rupp (Keep your answers covered. Bubble in name and id#) Name 1.The profit maximizing output level for a perfectly competitive firm is where A) P = MC. B) P = AVC. C) MC
More informationDeriving Firm s Supply Curve
Firm Decision A. The firm calculates the marginal cost of each unit of output B. The firm calculates the marginal revenue of selling each unit of output. For the competitive firm this is the price of output.
More informationECON 221: PRACTICE EXAM 2
ECON 221: PRACTICE EXAM 2 Answer all of the following questions. Use the following information to answer the questions below. Labor Q TC TVC AC AVC MC 0 0 100 0 -- -- 1 10 110 10 11 1 2 25 120 20 4.8.8
More informationSecond Edition ROBERT H. FRANK BEN S. BERNANKE LOUIS D. JOHNSTON. Cornell University
Second Edition ROBERT H. FRANK Cornell University BEN S. BERNANKE Princeton University [affiliated] Chairman, Board of Governors of the Federal Reserve System with special contribution by LOUIS D. JOHNSTON
More informationASHORTCOURSEIN INTERMEDIATE MICROECONOMICS WITH CALCULUS. allan
ASHORTCOURSEIN INTERMEDIATE MICROECONOMICS WITH CALCULUS Roberto Serrano 1 and Allan M. Feldman 2 email: allan feldman@brown.edu c 2010, 2011 Roberto Serrano and Allan M. Feldman All rights reserved 1
More informationLecture # 14 Profit Maximization
Lecture # 14 Profit Maximization I. Profit Maximization: A General Rule Having defined production and found the cheapest way to produce a given level of output, the last step in the firm's problem is to
More informationR.E.Marks 1997 Recap 1. R.E.Marks 1997 Recap 2
R.E.Marks 1997 Recap 1 R.E.Marks 1997 Recap 2 Concepts Covered maximisation (& minimisation) prices, CPI, inflation, purchasing power demand & supply market equilibrium, gluts, excess demand elasticity
More informationMS KENDRIYA VIDYALAYA SANGATHAN, KOLKATA REGION
MS KENDRIYA VIDYALAYA SANGATHAN, KOLKATA REGION 3 rd PRE-BOARD EXAMINATION 2016-17 MARKING SCHEME CLASS-XIIECONOMICS M. MARKS: 100 General Instruction: 1. Please examine each part of question carefully
More information*** Your grade is based on your on-line answers. ***
Problem Set # 10: IDs 5000-6250 Costs of Production & Short-run Production Decisions Answer the questions below. Then log on to the course web site (http://faculty.tcu.edu/jlovett), go to Microeconomics,
More informationMeasuring Cost: Which Costs Matter? (pp )
Measuring Cost: Which Costs Matter? (pp. 213-9) Some costs vary with output, while some remain the same no matter the amount of output Total cost can be divided into: 1. Fixed Cost (FC) Does not vary with
More information1. The advantage of sole proprietorship over partnership is that: A) it is easier to finance a business where there is only one owner.
Practice multiple choice for chapter 6, Producer theory 1. The advantage of sole proprietorship over partnership is that: A) it is easier to finance a business where there is only one owner. B) a greater
More informationType of industry? Marginal & Average Cost Curves. OUTLINE September 25, Costs: Marginal & Average 9/24/ :24 AM
OUTLINE September 25, 2017 s Supply Decisions, continued Costs of Production (this is where we ended 9/20) Perfect Competition Produce q where MR=MC to maximize profit Calculating Profit If planning to
More informationPaul Krugman and Robin Wells. Microeconomics. Third Edition. Chapter 11 Behind the Supply Curve: Inputs and Costs. Copyright 2013 by Worth Publishers
Paul Krugman and Robin Wells Microeconomics Third Edition Chapter 11 Behind the Supply Curve: Inputs and Costs Copyright 2013 by Worth Publishers 1. Economics of the firm: An overview A. Profit = Revenue
More informationChapter 9. Noncompetitive Markets and Inefficiency. Copyright 2011 Pearson Addison-Wesley. All rights reserved.
Chapter 9 Noncompetitive Markets and Inefficiency FIGURE 9.BP.1 Market Structures and Their Characteristics 9-2 Monopoly Monopoly Characteristics: 1 firm, no close substitutes, so the firm can set Price.
More informationThe Costs of Production
C H A P T E R The Costs of Production Economics P R I N C I P L E S O F N. Gregory Mankiw Premium PowerPoint Slides by Vance Ginn & Ron Cronovich 2009 South-Western, a part of Cengage Learning, all rights
More information13 The Costs of Production
Seventh Edition Principles of Economics N. Gregory Mankiw Wojciech Gerson (1831-1901) CHAPTER 13 The Costs of Production ACTIVE LEARNING 1 Brainstorming costs You run Ford Motor Company. List three different
More informationLecture 28.April 2008 Microeconomics Esther Kalkbrenner:
Lecture 28.April 2008 Microeconomics Esther Kalkbrenner: Supply and Demand Familiar Concepts Supply and Demand (Chapter 2) Applying the Supply and Demand Model (Chapter 3) Consumers Choice Consumer Choice
More informationChapter-17. Theory of Production
Chapter-17 Theory of Production After reading this lesson, you would be able to: 1. Define production function, isoquants, marginal product, price discrimination, monopsonist and the all-or-nothing demand
More informationThe Costs of Production
The of Production P R I N C I P L E S O F ECONOMICS FOURTH EDITION N. GREGORY MANKIW PowerPoint Slides by Ron Cronovich 6 Thomson South-Western, all rights reserved A C T I V E L E A R N I N G : Brainstorming
More informationG.C.E. (A/L) Support Seminar Economics - I Guide for the Answer
Question No. G.C.E. (A/L) Support Seminar - 2014 21 - Economics - I Guide for the Answer Answer No. Question No. Answer No. 1 5 26 2 2 3 27 5 3 4 28 2 4 1 29 5 5 3 30 2 6 3 31 2 7 3 32 4 8 3 33 3 9 5 34
More informationWhoever claims that economic competition represents 'survival of the fittest' in the sense of the law of the jungle, provides the clearest possible
Whoever claims that economic competition represents 'survival of the fittest' in the sense of the law of the jungle, provides the clearest possible evidence of his lack of knowledge of economics. -George
More informationANTITRUST ECONOMICS 2013
ANTITRUST ECONOMICS 2013 David S. Evans University of Chicago, Global Economics Group Elisa Mariscal CIDE, ITAM, CPI TOPIC 3: DEMAND SUPPLY & STATIC COMPETITION Date Topic 3 Part 1 7 March 2013 Overview
More informationis a concept that relates the responsiveness (or sensitivity) of one variable to a change in another variable. Elasticity of A with respect to B = %
Elasticity... is a concept that relates the responsiveness (or sensitivity) of one variable to a change in another variable. Elasticity of A with respect to B = % change in A / % change in B Elasticity
More informationECONOMICS 2016 (A) ( NEW SYLLABUS ) SCHEME OF VALUATION. 1. Prof. Ragnar Frisch 1 1
ECONOMICS 06 (A) ( NEW SYLLABUS ) SCHEME OF VALUATION Subject Code : (N/S) I. PART A. Prof. Ragnar Frisch. Yed q y y q. According to Watson, "production function is the relationship between physical inputs
More informationTheory of Cost. General Economics
Theory of Cost General Economics Cost Analysis Cost Analysis refers to the Study of Behaviour of Cost in relation to one or more Production Criteria like size of Output, Scale of Operations, Prices of
More information3. Trade and Development
Trade and Development Table of Contents 3. Trade and Development the arguments a) Effects of an import tariff b) Effects of an export subsidy c) Arguments for trade policy 164 a) Effects of an import tariff
More informationECONOMICS. Time Allowed: 3 hours Maximum Marks: 100
Sample Paper (CBSE) Series ECO/SP/1B Code No. SP/1-B ECONOMICS Time Allowed: 3 hours Maximum Marks: 100 General Instructions: (i) All Questions in both the sections are compulsory. However there is internal
More informationIV. THE FIRM AND THE MARKETPLACE
IV. THE FIRM AND THE MARKETPLACE A. The Firm's Objective 1. The firm is an institution that organizes production. a. The firm hires land, labor, capital and entrepreneurial ability in the factor markets.
More informationINDIAN SCHOOL MUSCAT
INTRODUCTORY MICROECONOMICS UNIT 1: INTRODUCTION VERY SHORT ANSWER QUESTION (1 MARK EACH) 1. A common place where buyers and sellers come in close contact to buy or sell goods and services 2. What to produce
More informationThe Costs of Production
The Costs of Production The Costs of Production The Law of Supply: Firms are willing to produce and sell a greater quantity of a good when the price of the good is high. This results in a supply curve
More informationECON 100A Practice Midterm II
ECON 100A Practice Midterm II PART I 10 T/F Mark whether the following statements are true or false. No explanation needed. 1. In a competitive market, each firm faces a perfectly inelastic demand for
More informationEC306 Labour Economics. Chapter 5" Labour Demand
EC306 Labour Economics Chapter 5" Labour Demand 1 Objectives Labour demand in the short run - model, graph, perfectly competitive market Labour demand in the long run - model, graph, scale and substitution
More informationSTUDY MATERIAL DAKSHINA C L A S S E S. Session:
STUDY MATERIAL DAKSHINA C L A S S E S Class Subject : XII : Economics(Study Material, HOTS and VBQ) Session: 2015-16 Head Office : 305, Green Plaza, L.P Savani Circle, Adajan, Surat. Web Site : www.thedakshinaclasses.com,
More information(52) ECONOMICS Afternoon
All Rights Reserved THE ASSOCIATION OF ACCOUNTING TECHNICIANS OF SRI LANKA FOUNDATION EXAMINATION - JANUARY 2013 Time: 02 hours Instructions to candidates (52) ECONOMICS 19-01-2013 Afternoon 2.00 4.00
More informationEconomics 101 Spring 2000 Section 4 - Hallam Final Exam Version E - Blue
Economics 101 Spring 2000 Section 4 - Hallam Final Exam Version E - Blue 1. Marginal revenue measures a. the change in cost required to produce one more unit of output. b. the change in output that can
More informationECONOMICS. Time Allowed: 3 hours Maximum Marks: 100
Sample Paper (CBSE) Series ECO/SP/D Code No. SP/-D ECONOMICS Time Allowed: hours Maximum Marks: 00 General Instructions: (i) All Questions in both the sections are compulsory. However there is internal
More informationMACROECONOMICS - CLUTCH CH. 6 - INTRODUCTION TO TAXES.
!! www.clutchprep.com CONCEPT: INTRODUCING TAXES AND TAX INCIDENCE Taxes allow the government to provide public services. Taxes can either be imposed on the buyer or the seller of a good. The tax shifts
More informationGS/ECON 5010 Answers to Assignment 3 November 2005
GS/ECON 5010 Answers to Assignment November 005 Q1. What are the market price, and aggregate quantity sold, in long run equilibrium in a perfectly competitive market for which the demand function has the
More informationPAPER-2: Fundamental of Economics Page no:
EIA Scanner/CA Profession Level-I /ICAN/ Paper-2: Fundamental of Economics 103 PAPER-2: Fundamental of Economics Page no: 103-138 June 2001 Foundation level (Economics) Question No.1 is compulsory 1.Which
More informationProduction. Economics II: Microeconomics. November Aslanyan (VŠE Praha) Production 11/09 1 / 25
Production Economics II: Microeconomics VŠE Praha November 2009 Aslanyan (VŠE Praha) Production 11/09 1 / 25 Microeconomics Consumers: Firms: People. Households. Internal Organisation. Industrial Organisation.
More informationECONOMICS 103. Topic 7: Producer Theory - costs and competition revisited
ECONOMICS 103 Topic 7: Producer Theory - costs and competition revisited (Supply theory details) Fixed versus variable factors; fixed versus variable costs. The long run versus the short run. Marginal
More informationPROBLEM SET 3. Suppose that in a competitive industry with 100 identical firms the short run cost function of each firm is given by: C(q)=16+q 2
PROBLEM SET 3 Question 1 Suppose that in a competitive industry with 100 identical firms the short run cost function of each firm is given by: C(q)=16+q 2 a) Derive and graph the AC, AVC, and MC function
More informationChapter 9. The Instruments of Trade Policy
Chapter 9 The Instruments of Trade Policy Introduction So far we learned that: 1. Tariffs always lead to deadweight losses for small open economies 2. A large country can increase its welfare by using
More informationMicroeconomic Analysis
Microeconomic Analysis Competitive Firms and Markets Reading: Perloff, Chapter 8 Marco Pelliccia mp63@soas.ac.uk Outline Competition Profit Maximisation Competition in the Short Run Competition in the
More informationKENDRIYA VIDYALAYA SANGATHAN ERNAKULAM REGION SECOND PRE-BOARD EXAMINATION CLASS XII ECONOMICS (30) Time Allowed- 3 Hours
KENDRIYA VIDYALAYA SANGATHAN ERNAKULAM REGION SECOND PRE-BOARD EXAMINATION 208-9 CLASS XII ECONOMICS (0) MM-80 Time Allowed- Hours General Instructions: i. All questions in both sections are compulsory.
More informationChapter 16: Equilibrium
Econ 401 Price Theory Chapter 16: Equilibrium Instructor: Hiroki Watanabe Summer 2009 1 / 44 1 Clearing Market 2 Tax Change in Price Clearing Market with Tax Who Pays the Tax Tax Incidence 3 Tax Incidence
More informationNorthwestern Economics Tournament
Northwestern Economics Tournament Individual Exam April 7, 2018 NAME: SCHOOL: TEAM NAME: There are 60 questions in this packet and 1 challenge question that is optional. You have 1 hour to complete the
More informationAS/ECON 2350 S2 N Answers to Mid term Exam July time : 1 hour. Do all 4 questions. All count equally.
AS/ECON 2350 S2 N Answers to Mid term Exam July 2017 time : 1 hour Do all 4 questions. All count equally. Q1. Monopoly is inefficient because the monopoly s owner makes high profits, and the monopoly s
More informationc U 2 U 1 Econ 310 Practice Questions: Chaps. 4, 7-8 Figure 4.1 Other goods
Econ 310 Practice Questions: Chaps. 4, 7-8 Figure 4.1 Other goods A H a c U 2 b U 1 0 x Z H Z 1. Figure 4.1 shows the effect of a decrease in the price of good x. The substitution effect is indicated by
More informationEcon 103 Lab 10. Topic 7. - Producer theory. - Brief review then group work on assigned. - iclicker questions in the last mins.
Econ 103 Lab 10 Topic 7. - Producer theory. - Brief review then group work on assigned - iclicker questions in the last 15-20 mins. 1 Cost curves Make sure you understand the u-shaped cost curves illustrated
More informationCITY UNIVERSITY LONDON. BSc (Honours) Degree in Actuarial Science BSc (Honours) Degree in Insurance and Investment. Part I Examination
CITY UNIVERSITY No. 603.50b LONDON BSc (Honours) Degree in Actuarial Science BSc (Honours) Degree in Insurance and Investment Part I Examination Introduction to Economics Monday 3 June 1996 1.00 pm - 4.00
More informationPRISONER S DILEMMA. Example from P-R p. 455; also 476-7, Price-setting (Bertrand) duopoly Demand functions
ECO 300 Fall 2005 November 22 OLIGOPOLY PART 2 PRISONER S DILEMMA Example from P-R p. 455; also 476-7, 481-2 Price-setting (Bertrand) duopoly Demand functions X = 12 2 P + P, X = 12 2 P + P 1 1 2 2 2 1
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
Exam Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Perfect competition is an industry with A) a few firms producing goods that differ somewhat
More informationTHE INDIAN COMMUNITY SCHOOL, KUWAIT
THE INDIAN COMMUNITY SCHOOL, KUWAIT SERIES : I MODEL / 207-208 CODE : N 030 TIME ALLOWED : 3 HOURS NAME OF STUDENT : MAX. MARKS : 80 ROLL NO. :.. CLASS/SEC :.. NO. OF PAGES : 3 ECONOMICS ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
More informationINSTITUTE OF ACTUARIES OF INDIA
INSTITUTE OF ACTUARIES OF INDIA EXAMINATIONS 21 st March 2018 Subject CT7 Business Economics Time allowed: Three Hours (10.30 to 13.30 Hours.) Total Marks: 100 INSTRUCTIONS TO THE CANDIDATES 1. Please
More informationSouth Pacific Form Seven Certificate ECONOMICS. QUESTION and ANSWER BOOKLET. Time allowed: Two and a half hours
104/1 South Pacific Form Seven Certificate INSTRUCTIONS ECONOMICS 2016 QUESTION and ANSWER BOOKLET Time allowed: Two and a half hours Write your Student Personal Identification Number (SPIN) in the space
More informationEconomics 101 Spring 2000 Section 4 - Hallam Exam 4A - Blue
Economics 101 Spring 2000 Section 4 - Hallam Exam 4A - Blue 1. Marginal revenue measures a. the change in cost required to produce one more unit of output. a. the change in output that can be obtained
More informationExternalities 1 / 40
Externalities 1 / 40 Key Ideas What is an externality? Externalities create opportunities for Pareto improving policy Externalities require active and ongoing policy interventions The optimal (second best)
More informationEC 202. Lecture notes 14 Oligopoly I. George Symeonidis
EC 202 Lecture notes 14 Oligopoly I George Symeonidis Oligopoly When only a small number of firms compete in the same market, each firm has some market power. Moreover, their interactions cannot be ignored.
More informationMKTG 555: Marketing Models
MKTG 555: Marketing Models A Brief Introduction to Game Theory for Marketing February 14-21, 2017 1 Basic Definitions Game: A situation or context in which players (e.g., consumers, firms) make strategic
More informationChapter 14: Firms in Competitive Markets
Econ 3 Introduction to Economics: Micro Chapter 4: Firms in Competitive Markets Instructor: Hiroki Watanabe Spring 3 Watanabe Econ 4935 4 Profit Maximization / 67 Competitive Market Profit Maximization
More informationMETHODS OF CALCULATING NATIONAL INCOME
1) What is meant by circular flow of income? 1 2) What are the two types of circular flow of income? 1 3) What do you mean by real flow? 1 4) What do you mean by money flow? 1 5) Differentiate between
More informationFinal Term Papers. Fall 2009 (Session 03) ECO401. (Group is not responsible for any solved content) Subscribe to VU SMS Alert Service
Fall 2009 (Session 03) ECO401 (Group is not responsible for any solved content) Subscribe to VU SMS Alert Service To Join Simply send following detail to bilal.zaheem@gmail.com Full Name Master Program
More information