October 14, 2019 Chapter 10 - Perfect Competition
- Read Chapter 10 - Perfect Competition Chapter 10 PPT
- Goal of Profit Maximization
- 4 Conditions for Perfect Competition
- Short-run Condition for Profit Maximization
- The Shutdown Condition
- Short-run Competitive Industry Supply
- Short-run Competitive Equilibrium
- The efficiency of short-run competitive equilibrium
- Producer Surplus
October 16, 2019 Chapter 10 - Perfect Competition continued
- Perfect Competition in the Long-run
October 7, 2019 Chapter 9 - Costs
- Read Chapter 9 - Costs Chapter 9 PPT
- Short-run (at least one input if fixed) - usually we use Labor as our variable factor
- TC = TFC + TVC
- Fixed costs and Variable cost - graphing
- So ATC = AFC + AVC
- Marginal costs - change in cost due to a change in quantity
- Graphing cost curves
- Allocating between two production activities
- Relationship amoung MP, AP, MC, and AVC - it's all about wages
- Cost minimization
- The choice between the optimal input choice and long-run costs
- The Long Run Cost Structure
October 9, 2019 NO CLASS: In K.C. presenting a paper at the MVEA Conference
September 30, 2019 Chapter 8 - Production
- Read Chapter 8 - Production Chapter 8 PPT
- Review the exam first
- What's a Production Function
- Fixed and Variable Inputs
- Production in the Short-run
- Marginal and Average product curves
- Revisit the MP and AP of labor curves
October 2, 2019 Chapter 8: Production - Continued
- Read Chapter 8 - Production Chapter 8 PPT
- Review: What's a Production Function
- Fixed and Variable Inputs
- Production in the Short-run
- Marginal and Average product curves
- Revisit the MP and AP of labor curves
- Production in the Long-run
- Isoquants
- Marginal Rate of Technical Substitution
- Returns to Scale
- Increasing Returns to Scale
- Do Problems #3, 4, 5, and 6 for Monday
September 23, 2019 Review Day
- Bring all your materials to review and ask questions
September 25, 2019 Exam 1, Chapters 1 - 4
September 16, 2019 Chapter 4 - Demand: Individual and Market
- Read Chapter 4 - Demand: Individual and Market Chapter 4 PPT
- Income and Substitution Effects of a Price Change
- Price Consumption Curve: Varying the price of one good in Indifference Curve "space"
- Individual Consumer's Demand Curve (in P-Q "space")
- Income Consumption Curve: The Engel Curve
- Income and Substitution Effects of a Price Change
- Income and Substitution Effects of a Price Sensitive Good
- Market Demand: Aggregating the Individual Demand Curves (adding them horizonally)
September 18, 2019 Chapter 4: Demand: Individual and Market - Continued
- Read Chapter 4 - Demand: Elasticities Chapter 4 PPT
- Price Elasticity of Demand
- Midpoint Formula
- Geometric Interpretation
- Point-Slope Method
- Elasticity and Total Expenditure
- 4 Determinants of Elasticity
- Income Elasticities and Cross Price Elasticities
September 9, 2019 Chapter 3: Consumer Behavior
- Read Chapter 3 - Budget Constraints: Chapter 3 PPT
- What is the opportunity cost of one good in terms of the other (slope of the budget constraint)
- How does a price change cause a rotation in the Budget Constaint?
- If income increases, what does that cause?
- 4 Properties of Perference Orderings (Axioms)
- Indifference Curves and the Marginal Rate of Substitution
- What is a corner solution?
- Perfect substitutes and perfect complements
September 11, 2019 Chapter 4: Demand: Individual and Market
- Read Chapter 3 - Budget Constraints: Chapter 3 PPT
- 4 Properties of Perference Orderings (Axioms)
- Indifference Curves and the Marginal Rate of Substitution
- What is a corner solution?
- Perfect substitutes and perfect complements
- Read Chapter 4 - Demand: Individual and Market Chapter 4 PPT
- Income and Substitution Effects of a Price Change
September 2, 2019 Labor Day Holiday!!
September 4, 2019 Chapter 2: Supply and Demand continued
- Finish S & D
- Read Chapter 2 - Chapter 2 PPT
- Some Algebra
- Application: Taxation
- Appendix - How do taxes affect consumers and producers?
- The incidence of the tax: Who bears the burden of the tax?
- So it does NOT matter who pays the government (S or D can shift, it matters not!)
- EIA numbers in a .pdf file - updated a week ago
August 26, 2019 An Introduction to the Course, Chapter 1
- Read Chapter 1 - Chapter 1 PPT
- What is Microeconomics About?
- The Cost-Benefit Analysis
- The Marginal Analysis
- Positive vs. Normative Analysis
August 28, 2019 Chapter 2: Supply and Demand
- Read Chapter 2 - Chapter 2 PPT
- The Law of Supply and Demand
- Equilibrium, Surplus, and Shortage
- Determinants of Demand and Supply
- Some Algebra
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