Structure Definition When to provide a public good Efficient provision Private provision: free-riding Variable quantities of public good -Efficient amount Free-riding problem How to provide public goods? Demand revelation

Structure Economic profit Short-run- profit maximization -Comparative statics Long- run profit maximization Profit maximization and returns to scale Revealed profit maximization

Structure Market environments Market demand for a competitive firm Short-run- supply decision Upward sloping MC curve Shut- down condition Long -run- supply decision Comparing long-run- and short--run decisions Producer's' surplus and profits

Structure What causes monopoly Profit-maximizing- choices of monopoly Markup pricing Taxing monopoly Inefficiency of monopoly Natural monopoly(自然垄断)

Mission of Economists Gary Becker: believe that the main purpose of economics is to understand and help to alleviate poverty\ Who are the poor? How can one help?

Structure on -collusive- moves Simultaneous moves Quantity competition -Cournot model Price competition- Bertrand model Sequential moves Quantity leadership- Stakelberg model Price leadership Collusion

Structure Types of cost curves Fixed, variable and total cost functions Average fixed, average variable and average cost functions Marginal cost functions Marginal and variable cost functions Marginal and average cost functions Short run and long run cost curves

Structure Describing technologies Production set or technology set Production function Isoquant Marginal product Returns to scale Technical rate of substitution well- behaved technologies Long run and short run

(1)每次课上教员都会布置习题。周一的作业在周四课前,周四的作业周一课前交给助教。助 教将对作业打分;不交或迟交作业将不得分。 (2)本学期在期末考试外将有两次小测验和一次期中考试。小测验和期中考试只考阶段内容 但期末考试将考全部课程内容

一、1(5分)当边际产量递减时,规模报酬也一定递减