6. Choice Under Uncertainty a. Representing Uncertainty: Lotteries and Compound Lotteries b. Axioms of Expected Utility C. The Expected Utility Theory d. Empirical Challenges to Expected Utility Theory-the Paradox Business e. Application: Crime and punishment

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-rundecisions. Producer’s surplus and profits

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

The Concept of Investment For a one period investment, the ROR can be evaluated each year. For investments that generate returns in many periods, there are two ways of describing the rate of return

OTHER GOOD Rebating a Consumption tax based on inder RTP initial consumption RTP budget constraint Baseline

Quasi-linear Indifference preferences curves Final budget line Original budget Pivot Substitution effect=total effect

北京大学：《中级微观经济学》课程教学资源（PPT课件讲稿，英文版）Indifference curves（主讲：赵耀辉）

9. The Producer's Problem a. Firms and Maximization b. Production Functions C. Supply and Profit Functions d. Cost Functions e. Duality and Producers f. Application: Urban Systems

深圳大学经济学院：《微观经济学》课程教学课件（第6打印版）第12章 垄断竞争和寡头垄断

深圳大学经济学院：《微观经济学》课程教学课件（第6打印版）第11章 有市场势力的定价