Econ 201 Lecture 32 1 .pdf - Econ 201 02 : Principles of...

Econ 201 (02):
Principles of Microeconomics
Lecture 32
Associated Text Chapter: 22
December 7, 2022
1

Roadmap for today’s lecture
• Announcements
• Information about the final exam
• Chapter 22
• The frontiers of microeconomics
2

Announcements
• Today is the last day to complete your course surveys
• This is our last lecture. Please don’t show up on Friday!
• Problem Set 4 letter grades should be finalized soon
3

Final Exam
• Number of questions has yet to be determined
• MC only
• Open book and written on D2L
• It will cover everything we have covered in lecture
• The exam will be comprehensive
• The exam is scheduled to be 2 hours. However, I will be giving you 3
hours to complete the exam.
• The exam will open at 7:30am on Tuesday, December 20
th
and finish at
10:30am on Tuesday, December 20 th
• While the exam is scheduled to be 2 hours (8:30am-10:30am), I will be providing an
extra hour at the beginning of the exam. Therefore you have 3 hours to complete
the exam
• The alternative exam time is 17:00-20:00 on Monday, December 19 th
4

Recap of Chapter 18 – Factors of Production
• Last lecture, we learned:
• Inputs can be modelled similarly to outputs – with supply and
demand
• A competitive, profit maximizing firm considers two things when
deciding whether to hire a worker
• Firstly, the revenue that comes from that additional worker ( ??𝑃? )
• Secondly, the cost that comes from that additional worker ( ? )
• The firm hires workers up until ??𝑃? = ?
5

Chapter 22 – the frontiers of microeconomics
• Throughout this semester, we’ve learned
• (1) What it means to be an economist
• How to use models to explain the world and do analysis
• (2) How to use our supply and demand model
• Performing analysis of equilibrium allows for us to make conclusions about
price, quantity, surplus, etc.
• (3) How to push the limits of our model
• Introduce international trade and world prices
• Include different market structures (monopoly, duopoly etc.)
6