microbook_3e-page61 - the market x firms have all available...

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Lecture 5 Household Behavior and Consumer Choice Eric Doviak Principles of Microeconomics Household Behavior Perfect competition x many firms, each small relative to the overall size of the industry, producing virtually identical products x no firm is large enough to have any control over price Perfect Knowledge x households know the qualities and prices of everything available in
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Unformatted text preview: the market x firms have all available information concerning wage rates, capital costs and output prices Households basic decisions in output markets 1. How much of each product to demand 2. How much labor to supply 3. How much to spend and how much to save Page 61...
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This note was uploaded on 12/29/2011 for the course ECO 311 taught by Professor Willis during the Fall '10 term at SUNY Stony Brook.

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