Structure Utility function(效用函数) Definition Monotonic transformation(单调转换) Examples of utility functions and their indifference curves Marginal utility(边际效用) Marginal rate of substitution边际替代率 MRS after monotonic transformation

Structure The cost minimization problem Average costs Returns to scale and total and average costs Short run and long run costs

Structure From Individual to Market Demand Functions Elasticities Revenue and ownprice- elasticity of demand Marginal revenue and price elasticity

Structure Definition Consumption externality Production externality The tragedy of commons

How Should a Monopoly Price? So far a monopoly has been thought of as a firm which has to sell its product at the same price to every customer. This is uniform pricing. Can price-discrimination-(差别定价 ) earn monopoly higher profits?

Structure Market equilibrium Quantity tax and equilibrium Tax incidence税收分担) Deadweight loss(额外净损失)

Contents Dominant strategy Nash equilibrium Prisoner's' dilemma and repeated games Multiple equilibria and sequential games Pure and mixed strategies

Max u=Inx,+x2 stp2x1+P2x2≤m, XI 由于x1,x2给消费者带来的是严格正的效用,所以预算约束必定取等号。我们可以通过 预算约束消掉一个变量

Structure Describe preferences Indifference curves(无差异曲线) Well- behaved preferences Marginal rate of substitution(边际替代率)

Structure State contingent consumption(依情 形而定的消费) Preferences under uncertainty Attitudes toward risk State-contingent- budget constraint Choice under uncertainty Diversification and risk spreading