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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e Big icture ith Perfect Competition 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 + oquants ocost e Cost function Revenue Isoquants + Isocost line
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e Big Picture ith Monopoly The Big Picture with Monopoly rm sets quantity and price to aximise rofit Firm sets quantity and price to maximise profit MR = MC Q m P m = P (Q m ) is read off the demand curve arket Demand curve Cost function Market Demand curve Individual Demand curves Isoquants + Isocost line Preferences + Budget constraint
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e Big Picture ith onopsony The Big Picture with Monopsony uyer ts quantity and rice Buyer sets quantity and price MV = ME Q m P m = P (Q m ) is read off the supply curve arket Demand curve Cost function Market Demand curve Individual Demand curves Isoquants + Isocost line Preferences + Budget constraint
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15_The+Big+Picture - THE BIG PICTURE ECON 111:...

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