Total law of diminishing marginal u benefit marginal

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: al U benefit (marginal vs. total ) net benefit and consumer surplus the net-benefit maximizing rule for consumption of a single good the income effect (IE) of a price change the substitution effect (SE) of a price change app U n i t 6 : P e r f e c t co mp e t i t io n , p r o d u c t io n a n d p r o f i t assumptions for a perfectly competitive (PC) market (implications for behavior of PC firms) The demand curve facing a PC f Costs (fixed, variable, marginal) explicit costs and implicit costs profit (economic vs. accounting) fixed vs. variable inputs law of (and point of) diminishing marginal returns production curves (total, marginal, average) equimarginal principle for capital and labor decisions U n i t 7 : C os t s costs (fixed, variable, total, averages) shapes of unit cost curves in the short-run economies of scale and long-run costs curves (IRTS, CRTS, DRTS) U n i t 8 : P r o f i t M a x i mi z a t io n a n d lo ng r u n m a r k e t d y n a mi cs profit maximization by a PC firm the shut down decision (short-run) the long-run decision of whether or not to stay in the market -run supply curve long run competitive equilibrium (LRCE) getting there price implications of profitability implications of efficiency implications of U n i t 9 : M onopol y model of monopoly assumptions implications barriers to entry natural monopoly monopoly power profit max by a monopolist efficiency of PC vs. monopoly U n i t 10 : I m p e r f e c t C o m p e t i t i o n monopolistic competition (MC) model - assumptions - implications LR equilibrium and monopolistic competition - getting there - efficiency of (firm vs. market) profit max by MC and Oligopoly oligopoly models - The kinked demand curve model - cartels and collusion - price leadership  ...
View Full Document

This note was uploaded on 02/11/2014 for the course ECN 221 taught by Professor Wadman during the Spring '07 term at University of North Carolina Wilmington.

Ask a homework question - tutors are online