CHAPTER 9

CHAPTER 9 - -Perfectly Competitive equilibrium is at Ec,...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
CHAPTER 9 -Consumers utility-maximizing behavior result in demand . - Producers profit-maximizing behavior result in supply. - The sum of consumer and producer surplus is the market efficiency-which is maximized when there is no intervention in the market. - Deadweight Loss of Monopoly (DwL):
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: -Perfectly Competitive equilibrium is at Ec, where MC and D cut.-Monopolys profit-maximizing equilibrium is at Em where MC and MR cut.-Any intervention by government results in loss of efficiency and economic welfare?? Case 1:...
View Full Document

This document was uploaded on 03/21/2011.

Ask a homework question - tutors are online