E303lect11F09

E303lect11F09 - September 16, 2008 Reading Baye, Ch 2. pp...

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September 16, 2008 Reading Baye, Ch 2. pp 40-45 (review) 46-51 (Today) Collect Problem #3 FRIDAY Lecture 11 REVIEW___________________________________________________: II. Chapter Market Forces: Demand and Supply 4. Changes in demand vs. changes in qty demanded 5. The notion of consumer surplus 6. An analytical example . C. The Supply Side. 1. Driving Force. The Law of Diminishing Returns PREVIEW_____________________________________________ 2. Definition of Supply Curve 3. Determinants of supply: 4. Changes in Supply vs. Changes in Qty. Supplied 5. Producer Surplus 6. An Analytical Example LECTURE___________________________________________________ C. The Supply Side. In output market, this defines the behavior of sellers, 1. Initial assumption . Firms are motivated by the profit incentive, but constrained by increasing marginal costs (or, better yet, the law of diminishing returns (crowding). Example, consider conditions under which you would produce for sale quartz lamps from
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E303lect11F09 - September 16, 2008 Reading Baye, Ch 2. pp...

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