midterm2 notes

midterm2 notes - - Since it is in perfect competition in...

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- Since it is in perfect competition – in the long run there would be more to enter Constant cost industry – as firms enter the market in the long run – average total cost is at eq P= MC Perfect comp industry – market quantity would be smaller price would be same – given market demand decreases Assume increasing cost industry market demand dec – market decrease price will fall (demand for inputs goes down – price goes down) Dowanrds sloping curve – likes a a bf on Friday but not on Sunday Law of diminishing mariganl utility – marginal utility becomes smaller as she spends more time with this boyfriend Cost dec becauses already sunk cost Consumer selfless – FATAL EQ. – triangle under the demand curve and above total rev curve – total product and total rev difference – fatal eq – when he uses a dutch auction it is a form of price risk elimination, high demand intensity and low price – consumer selfless – will enjoy price policy – chanrges a different price when people have a high entensity – higher price
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This note was uploaded on 01/19/2011 for the course ECON 2005 taught by Professor Zirkle during the Fall '07 term at Virginia Tech.

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midterm2 notes - - Since it is in perfect competition in...

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