15_The+Big+Picture

15_The+Big+Picture - THE BIG PICTURE ECON 111...

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THE BIG PICTURE ECON 111: Microeconomics
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The Big Picture with Perfect Competition At the market level: Supply curve intersects Demand curve P * At the firm level: P * = MC q * q * = Q * Market Supply curve Market Demand curve Individual Supply curves Individual Demand curves Profit maximisation Budget constraint Preferences + Isoquants + Isocost line Cost function Revenue
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The Big Picture with Monopoly Firm sets quantity and price to maximise profit MR = MC Q m P m = P (Q m ) is read off the demand curve Market Demand curve Cost function I I l Individual Demand curves Isoquants + Isocost line Preferences + Budget constraint
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The Big Picture with Monopsony Buyer sets quantity and price MV = ME Q m P m = P (Q m ) is read off the supply curve Market Demand curve Cost function I I l Individual Demand curves Isoquants + Isocost line Preferences + Budget constraint
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The Big Picture with Price Discrimination Second degree First degree Third degree Different prices to Different prices for different
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