16equilibrium-ho

16equilibrium-ho - Marginal Revenue Competitive Equilibrium...

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Marginal Revenue Competitive Equilibrium Comparative Statics Quantity Tax Equilibrium (Chapter 16)
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Marginal Revenue Competitive Equilibrium Comparative Statics Quantity Tax Today Marginal Revenue Competitive Equilibrium Intro Equilibrium: Comparative Statics
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Marginal Revenue Competitive Equilibrium Comparative Statics Quantity Tax Midterm Next Week Covers material up to end of this week: chapters 12,14,15,16 10-15 multiple choice, 2 blue-book In class on Tuesday Bring scrantron, bluebook, pencil (and pen) Returned in section (or OH) following week See syllabus, FAQ for more details
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Marginal Revenue Competitive Equilibrium Comparative Statics Quantity Tax Marginal Revenue Q: Why is the MR curve always below D ? A: Lower price to sell additional unit; earn extra p on additional unit, but lose revenue w/ lower price on all previous units. R = pq = MR = R q = p · 1 + q p q Kale Price MR
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Marginal Revenue Competitive Equilibrium Comparative Statics Quantity Tax Marginal Revenue: Clicker Vote 2 How elastic is demand at the quantity at which MR = 0? A) Elastic B) Unit Elastic C) Inelastic D) Not enough info Kale Price MR
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