Midterm+3+Topics - Announcements Exam Wednesday(chs 11-18...

Info icon This preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
Announcements Exam Wednesday (chs. 11-18) HW for ch 18 due tonight Office hours today 2:30-4:30 and Tues. 2- 4:30pm or by appointment. Bring a calculator to the exam!! Half of the questions are from ch 14, 16, and 17
Image of page 1

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

View Full Document Right Arrow Icon
Overview of Topics Ch 15 – Antitrust Ch 11 – Input markets (general) Ch 12 – Labor markets Ch 13 – Capital markets Ch 14 – Structure of the firm and Imperfect Information Ch 16 – Public goods and public choice Ch 17 – Externalities Ch 18 – Income inequality
Image of page 2
Antitrust Regulation of natural monopolies If set P=MC – firm loses money If set P=AC, firm earns zero economic profit – but not quite socially efficient FTC and DOJ monitor competitiveness in US industries Use HHI to determine whether a merger should be challenged (share 2 +share 2 +…) If under 1000 – never challenged, if over 1800, almost always challenged
Image of page 3

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

View Full Document Right Arrow Icon
Input markets (ch11-12) Demand for labor (derived) Marginal productivity Marginal revenue product (MRP=MP*P x ) Hire input until the MRP of the input=price of the input. (P=MRP) “Economic rent” = value of the input above and beyond its opportunity cost.
Image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern