Introduction to Microeconomics: A Mathematical Approach
MGEA A02

Fall 2014
ECMAO4H
Week 5
Don't forget: Our ﬁrst term test has been
scheduled on Saturday, October 25th at 1pm
More information on room assignments will be
posted on Blackboard soon.
Production, Productivity and Costs
i.e., what lies behind the supply curve a®
Prod
Introduction to Microeconomics: A Mathematical Approach
MGEA A02

Fall 2014
Week 2: Demand and Supply in a
Competitive Market
What did we learn last week?
 definition of economics
 opportunity cost
 production possibilities model
 calculating opportunity cost on PPF
 PPF with increasing costs
 maximizing a value (or' utili
Introduction to Microeconomics: A Mathematical Approach
MGEA A02

Fall 2014
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Introduction to Microeconomics: A Mathematical Approach
MGEA A02

Fall 2014
Week #3  Demand and Utility
Explaining/Exploring Demand Curves
I 1) Why are demand curves nega’rivelx sloged?
2) How do we in’rerpref a goin’r on The demand
curve? '
3) How do we in’rerpre’r an area under The
demand curve?
4) How do demand curves rela’re
Introduction to Microeconomics: A Mathematical Approach
MGEA A02

Fall 2012
Globalization is a trade
Various companies trading worldwide
Movement of capital products
Globalization leads to individualism
Job loss in developed countries
Under developed countries create more jobs
Jobs developed  jobs undeveloped
Movement towards
Introduction to Microeconomics: A Mathematical Approach
MGEA A02

Fall 2012
Nancy Zuo
Oct.13th 2015
ENG4U
Mr.luxenburg
Essay rough copy
Topic: Betrayal and Redemption: how it the theme of betrayal and redemption
important to the story arc in the novel? Make a list of instances in the novel where
someone is forgiven. What constitu
Introduction to Microeconomics: A Mathematical Approach
MGEA A02

Fall 2012
With the development of market economy, modern
corporations are confronted with more and more
drastic competitive environments. Because of
severe competition and market saturation, it is more
and more difficult for companies to acquire new
customers. Faci
Introduction to Microeconomics: A Mathematical Approach
MGEA A02

Fall 2012
Account Name
1 Property, Plant, Equipment
Cash
Long Term Debt
Common Shares
Bought Arena and financed it through shares, longterm debt, and cash
2 Cash
Accounts Receivable
Arena Revenue
Pro Shop and Restaurant Revenue
Amount of Revenue earned during the
Introduction to Microeconomics: A Mathematical Approach
MGEA A02

Fall 2014
"1%; (18. Emma H) q
—>;1) P = MC 2 AVC defsm
/ ( q* where MR 2 P 2 MC)
5
E
2)P<AVC———>q*=0 \
Firm’s SR (Tl Max) —> MR = MC
E —>  (Le. very small ﬁrm)
—+ MR : MC & P 2 MR .
ﬂszmTC
= qu — VC — FC
—FC
2 qu — AVCxq 7 187
7r =(P —AVC)xq—FC
Above
Introduction to Microeconomics: A Mathematical Approach
MGEA A02

Fall 2014
MS; :Mgg MW) What policies can government adopt to reduce
f'icarbon
Regulation (command and control policieS):
— banning of incandescent light bulbs in 2012
 close coalfired electricity plants
 upgrade building insulation standards
 upgrade emission
Introduction to Microeconomics: A Mathematical Approach
MGEA A02

Fall 2014
Canada has The comgara’rive advan’rage in W.
Mexico has The compara’rive advantage in 5.
21 Con both countries benefit from Trade?
Sifuaﬁon ''?=(under _
Total world output zi‘ZEDWhea’rigoy/beans
22 Lei each coum‘r'Y in producing The
good in whic
Introduction to Microeconomics: A Mathematical Approach
MGEA A02

Fall 2014
Last class (for us, Thursday T_h§ week)
When?: Monday, December 15Th (9 am  12 noon)
Where?: in various loca’rions (check Blackboard)
WhaT forma’r? 40 MC and 2 shor’r answer
‘5? (TBA)
*‘of'fice'i": (also TBA)
‘ﬂﬂmWWM —+
f  Next Monday is The la
Introduction to Microeconomics: A Mathematical Approach
MGEA A02

Fall 2014
What would happen if The firms cooperate
*0
This is an easy problem, since oquuT cos’rs
$2 per uni’r To produce, no ma’rTer who
produces if. 50 TC : ZQT
Join? profiTs Z PXQT " ZQT = TRT  TCT
= [(14 " QT)XQT] ' ZQT
= 14QT  QTZ — 2QT
Maximize We dQT 214—
Introduction to Microeconomics: A Mathematical Approach
MGEA A02

Fall 2014
MGEAOZ  Week 11 OLIGOPOLY
Oligopoly is a markeT in which There are
How many? " "
So few ThaT They feel The effecTs of each
oTher's decisions. ‘
(cigareTTe companies, The banks, oil
producers, sTeel producers, car companies,
insurance companies, bre
Introduction to Microeconomics: A Mathematical Approach
MGEA A02

Fall 2014
(is 1 h is
realistic@ ius’r convenien’r?)
What happens in The SR and LR when
demand increases in a PC industry? I
18 Wha‘l' happens in The SR and LR when
demand increases in a PC indus‘l'r'y?
IndusTr'y
Supply —
SR
Industry
Demand
PC FIRM PC INDUST
Introduction to Microeconomics: A Mathematical Approach
MGEA A02

Fall 2014
MGEAOZ  Week 9
“ﬁNo’re   (90 “a a
nu’res long  same forma’r as firs’r TesT).
 (probably 40 MC ques’rions
and 2 shorT answer/graphical ques’rions‘)
This week:
Looking of The effec’rs of an increase in
cosTs  algebraic example
More on perfec’r com
Introduction to Microeconomics: A Mathematical Approach
MGEA A02

Fall 2014
. Baikviks e45: g be glwﬁ :
0% Kym“ 9 ROOM ALLOCATION  Sat, Oct 25 at 1:00pm (90 minutes).
Please make sure you write in only the room that you
are assigned. if you fail to write in your assignment
room, marks will be deducted from your overall test
sco
Introduction to Microeconomics: A Mathematical Approach
MGEA A02

Fall 2014
ROOM ALLOCATION  Sat, Oct 25 at 1:00pm (90 minutes).
Please make sure you write in only the room that you
are assigned. If you fail to write in your assignment
room, marks will be deducted from your overall test
score.
Old Gym (South campus)  Students w
Introduction to Microeconomics: A Mathematical Approach
MGEA A02

Fall 2014
Week 6: CosTs of ProducTion
CosTs: how do They behave as oquuT rises?
WhaT does The Typical graph _of 2
Wha’r does The Typical graph of (marginal
& average) cos‘r curves look like (in The
N
#5 Wha‘r is The of (3051‘ curves?
Example: TC = 400 + 5q +
Introduction to Microeconomics: A Mathematical Approach
MGEA A02

Fall 2012
Nancy Zuo
Oct.13th 2015
ENG4U
Mr.luxenburg
Essay rough copy
Topic: Betrayal and Redemption: how it the theme of betrayal and redemption
important to the story arc if the novel? Make a list of instances in the novel where
someone is forgiven. What constitu
Introduction to Microeconomics: A Mathematical Approach
MGEA A02

Fall 2012
Some people say children no longer need to develop handwriting skills. Others
believe that handwriting is still important. Discuss both these views and give your
own opinion.
Brainstorm:
Agree: heritage of culture; increase the awareness of roots
Disagree
Introduction to Microeconomics: A Mathematical Approach
MGEA A02

Fall 2012
Topic 7
FirsT midTerm TesT 
Monday, November 2"d aT 5 pm.
Where do I go? Look on Blackboard
WhaT's on The TesT?
This week: PerfecT CompeTiTion
A Type of markeT  a markeT sTrucTure"
When There is considerable compeTiTion
beTween a large number of produc
Introduction to Microeconomics: A Mathematical Approach
MGEA A02

Fall 2012
w
[:90 I3 
MGEAOZ  Topic 10
OLIGOPOLV H
W
Oligopoly is a markeT in which There are
only a few Sellers.
How many?
.50 few ThaT They feel The effecTs of
each oTher's decisions.The profits of
each firm will depend on The sTraTegy
followed by iTs compeTiTor
Introduction to Microeconomics: A Mathematical Approach
MGEA A02

Fall 2012
Administrative matters first:
0 Course Evaluations  Do them now, please!
a The Final Exam 
When?: Thursday, December 17th"'1 
2 pm.  5 pm.
Where?: in various locations (check the
Blackboard site in another week or So)
What format? 40 MC and 2 short an
Introduction to Microeconomics: A Mathematical Approach
MGEA A02

Fall 2012
Topic 4  Elasticity, Tax Incidence and What difference does elasticity (of demand)
0 Tax Burden make? Example.university education
A key characteristic of demand and supply
curves!  Elasticity
Elasticity = sensitivity or reponsiveness
Changes in one var
Introduction to Microeconomics: A Mathematical Approach
MGEA A02

Fall 2012
Topic 11 MGEAOZ
Externalities and Public Goods
An externality is created when an action (e.g.,
buying or selling a good) affects bystanders
as well as market participants.
(bystander = other member of society, not
participating in the purchase and sale th