{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Econ1-Fall2010-08B-InvisHand-handout

Econ1-Fall2010-08B-InvisHand-handout - Readings Economics1...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Economics 1 Principles of Microeconomics 8. The Invisible Hand in Action (B) Fall 2010 Herb Newhouse 1 Readings Ch. 7: The Invisible Hand in Action (p. 208 – 214, 216 226) Response to Profits and Losses The Importance of Free Entry and Exit The Invisible Hand in Action The Distinction Between an Equilibrium and a Social Optimum We’re completely skipping Economic Rent versus Economic Profit (p 215 – 216) Economic Profit (p. 215 216). Know the idea of discounting, but I won’t ask you to do any numerical calculations (p 218 – 219) any numerical calculations (p. 218 – 219). 2 Outline Some different possible shapes for long run supply. The invisible hand in action The invisible hand in action. “No cash on the table.” Discounting. 3 Number of Firms and Cost Constant cost industry : input prices do not change as the number of firms in the market increases (above examples) in the market increases (above examples).
Background image of page 1

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

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}