Lectures 11 _ 12 - Resource discovery affecting the supply...

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x x p p x x p p Econ 100A – Microeconomics Professor Sarah Reynolds Department of Economics University of California, Berkeley Textbook by Thomas Nechyba Competitive Equilibrium (& Pricing of Exhaustible Resources) st , 2011 Market Supply When firms are all the same SR & LR When firms are different SR & LR
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x x p p x x p p Competitive Market Equilibrium Market Firm Equilibrium in the short & long run
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Mathematically finding the equilibrium Demand Supply Mathematically finding the equilibrium including labor & capital markets Demand Supply Implications for your life :
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x x p p Scarcity & Resource Pricing Present Value & Discounting: Incorporating future production in the profits Scarcity Costs: reserving some input for future production
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Unformatted text preview: Resource discovery affecting the supply curve Firm Market x x p p x x p p x x p p Supply Shifters Firm Market Long Run fixed cost Change in price of input fixed in the Short Run Change in Short Run variable cost x x p p x x p p w l Econ 100A Microeconomics Professor Sarah Reynolds Department of Economics University of California, Berkeley Textbook by Thomas Nechyba The Invisible Hand & the First Welfare Theorem Chapter 15 - March 3 rd , 2011 Producer Surplus: Consumer Surplus (review): Consumer & Producer Surplus Laborer & Producer Surplus in the Labor market: Pareto Optimality A Social Planner The Math The Magic of the Market Assumptions Example: 0 1 2 3 4 5 0 1 2 3 4 5 Using Utility Functions:...
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This note was uploaded on 09/11/2011 for the course ECON 100A taught by Professor Woroch during the Spring '08 term at University of California, Berkeley.

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Lectures 11 _ 12 - Resource discovery affecting the supply...

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