MicroEcon StudyGuide

MicroEcon StudyGuide - MicroEconStudyGuideCh.1 16:25...

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MicroEcon Study Guide-Ch. 1 16:25 Chapter 1 Positive:  questions have to do with explanation and prediction Narrative:  questions have to do with what ought to be Key assumption underlying the Theory of Firm The trade-off facing: o Firms How much, which, and the nest way to produce? o Workers Work vs. leisure; consumption vs. saving o Consumers How to allocate your income into goods Difference between market vs. industry Perfectly competitive market: o Buyers and sellers don’t have power to change individually Arbitrage The constant price is: o The real price of a good o Nominal price adjusted for inflation o The ‘current dollar’ price adjusted for inflation
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Ch. 2 16:25 Chapter 2 S (supply) curve reveals: o The Q of output that producers are willing to produce and sell at each  possible market price D (demand) curve reveals: o Ex) Which of the following will not cause a shift in the S of gas? o
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This note was uploaded on 02/06/2011 for the course 2010 39550 taught by Professor Piterbarg during the Fall '10 term at USC.

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MicroEcon StudyGuide - MicroEconStudyGuideCh.1 16:25...

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