9 Wednesday, September 13, 2006

9 Wednesday, September 13, 2006 - ---1 100 100 1000 1000...

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Wednesday, September 13, 2006 Microeconomics Air Quality MC 4 MC curve Is upward 3 sloping 2 1 Textile prod. 1 2 3 4 5 air quality MC Good 1 Will have a straight line because the MC is constant Good 2 MC of Good 1 MC Good 1 MARGINAL BENEFIT EXAMPLE MB MB curve is downward sloping First one is really satisfying then slowly gets less thirsty 1 2 3 4 5 Glasses of lemonade
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Wednesday, September 13, 2006 MARGINAL COST AND MARGINAL BENEFIT Air Quality Total Cost MC Total MB MB/MC
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Unformatted text preview: ---1 100 100 1000 1000 900 2 300 200 1600 600 300 3 600 300 1900 300 4 1000 400 2000 100-300 5 1500 500 2050 50 -450 MC MB 600 300 200 1 2 3 4 5 3 is the optimal or efficient amount Supply and Demand- A study of markets Market = A group of buyers and sellers of a particular good or service Buyers and Consumers = the demand for the good Sellers, Producers = the supply of goods and servicies...
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