In the last lecture two concepts were introduced: Pareto efficiency and general equilibrium. How do they relate? Theorem: The first welfare theorem states that every general equilibrium involves a Pareto efficient llocation

Endowments and Allocations Consider first the case of a pure exchange economy. (One with no production). Suppose there are two consumers, A and B, in a two good economy. A starts with an endowment of ωA =

Production — Oligopoly 1 Cournot Duopoly Suppose there are two firms in an industry. Their strategy spaces are quantities. Their payoffs are profits. Industry demand is given by the inverse demand function, P(Q), where industry production is Q = q1 + q2. They

Production — Games 1 Monopolistic Competition Monopolistic competition arises when there are a large number of price-setting firms in an industry with free entry. Suppose there are n firms. In the short run, each firm faces an nth of the market demand curve

模拟试题六 1.某商品X的需求函数为: Qx=197000-100P+50P+0.1m+0.02A 其中:Py=300为商品y的价格; 家庭平均收入m=10000 广告费A=200000

一、成本(Cost) 1.成本的定义 西方经济学中所指的成本是生产费用是生产中使用的各种生产要素代价或支出

一、微观经济学 主要研究资源配置问题。 这里的资源主要指生产要素,包括人力、物力和财力。在西方经济学中具体指:劳动(L)、资本(K)、土地(N)和企业家才能(E)

What Are We Doing in this Chapter? We take a further look at the comparative statics of demand function with respect to prices; We divide the changes in demand due to price changes into two effects:

What Do We Do in This Chapter? We conduct comparative statics analysis of ordinary demand functions -- the study of how ordinary demands

What Do We Do in This Chapter? We create a mathematical measure of preference in order to advance our analysis