Content Public goods Subscription Efficient provision of public goods Public choice EXternality What's externality? How to solute it? What's the efficient condition with externality
Content Pure exchange system The existence of Walrasian equilibrium The first theorem of welfare economics The second theorem of welfare economics Exchange with production
8.1. Independent Firms The downstream firm's problem is max(a-bxc-wT The upstream firm's problem is max(a-2b)3-cr The output is 8.2. Integrated Firm Suppose now that the two firms merge into one firm. This firms problem is max(a-by)y
Problem set 2 Micro Theory S. Wang Question 2. 1. You have just been asked to run a company that has two factories produc ing the same good and sells its output in a perfectly competitive market. The production
