Fitch%20-%20Class1%20F10%20-%20%20Introduction

Fitch%20-%20Class1%20F10%20-%20%20Introduction - Slide 1...

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Slide 1 Fall 2010 UGBA101A-03 Microeconomic Analysis for Microeconomic Analysis for Business Decisions Business Decisions Prof. Todd Fitch
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Slide 2 Syllabus Review • Course Overview • Logistics • Materials Microeconomic Analysis for Business Decisions • Policies • Grading
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Slide 3 Chapter 1: Preliminaries Agenda 1 A little story with some lessons What is a model? Parts of a model. Microeconomic Analysis for Business Decisions Why do we use models? 2 What is a market,? What constitutes a market 3 Some terminology
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Slide 4 “The accidental Theorist” by Paul Krugman Microeconomic Analysis for Business Decisions
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Slide 5 Microeconomic Analysis for Business Decisions
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Slide 6 Microeconomic Analysis for Business Decisions
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Slide 7 A little story 1 There is an economy with a 120 million workers 2 People in this economy only eat hot dogs and buns and people like to pair one bun with one hot dog. Microeconomic Analysis for Business Decisions 3 The technology is pretty simple: you need a worker for 2 days to get either a bun or a hot dog. 4 How can we organize this society?
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Slide 8 A little story 1. One possibility is to produce 30 million buns 30 million hot dogs . sing Microeconomic Analysis for Business Decisions 2. Using 60 million workers producing buns 60 million workers producing hot dogs. 3. Each worker will be eating a hot dog and a bun every four days.
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Slide 9 A little story 1. There is a new discovery: somebody finds a way to produce 1 hot dog with only one day of work . ow we have 30 million buns and 60 million hot dogs: this Microeconomic Analysis for Business Decisions 2. Now we have 30 million buns and 60 million hot dogs: this economy is throwing away 30 million hot dogs. 3. The hot dogs sector does not need 30 million workers. 4. What does this economy look like?
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A little story 1. The situation after the innovation: 90 million workers are still working but 30 million are unemployed The economy is producing 30 million buns and 30 million hot dogs ach mployed orker is eating a bun and a hot dog every ree Microeconomic Analysis for Business Decisions Each employed worker is eating a bun and a hot dog every three days but unemployed workers are not eating !!! 2. Technology has
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This note was uploaded on 11/23/2010 for the course UGBA 101A taught by Professor Mccullough during the Fall '08 term at University of California, Berkeley.

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Fitch%20-%20Class1%20F10%20-%20%20Introduction - Slide 1...

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