econ101w0720 - Introductory Economics Economics 101-300...

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
(c) Sherrie A. Kossoudji Introductory Economics Economics 101--300 Lecture # 20 Sherrie A. Kossoudji If you print the preliminary version of these slides before class, please be aware that they are likely to change right up to class time.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
(c) Sherrie A. Kossoudji Please remember that reading these slides does not substitute for attending class. These slides are merely outline guides for what is discussed during the lecture.
Background image of page 2
(c) Sherrie A. Kossoudji Schedule: Week 11 WEEK 13: WEEK OF MARCH 26 TH Lecture #: 20-21 Discussion #: 10 Anderson: Chapter 14, Anderson: Chapter 11 Subjects/Concepts: Externalities, private and social costs Public good and common resources Readings: This week: Next week: KW Chapter 19, KW Chapter 20 Complete KW Chapter 19 and KW Chapter 20 if necessary, KW Chapter 21 Homework: Graded: Ungraded: Chapter 16, problem set II Chapter 19 problem set I; Chapter 20, problem set I Section Quizzes: None Exams: None Other Important Information: None
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
(c) Sherrie A. Kossoudji Reasons for Government Intervention in markets Lack of Competition —think Microsoft—leads to antitrust laws Public Goods —the consumption of a good by an individual doesn’t take away another person’s consumption of the good. Externalities —when a firm or individual does not pay all of the costs associated with production or consumption. Missing Markets —markets are not functioning for a certain good. Limited Information —inadequate information for the market
Background image of page 4
Public Goods Public goods are public—that is, the consumption of them by one individual doesn’t stop another individual from consuming them as well. We say they are non-rivalrous , that is, people do not have to compete to consume them. We also say they are non-excludable , that is, it costs heavily to exclude anyone from from consuming them. Parks, defense, national forests, lighthouses, fire
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/04/2008 for the course ECON 101 taught by Professor Gerson during the Winter '08 term at University of Michigan.

Page1 / 20

econ101w0720 - Introductory Economics Economics 101-300...

This preview shows document pages 1 - 6. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online