1. Course Objective This course is intended for those taking Prelims in Philosophy, Politics and Economics, Mods in Modern History and Economics, Prelims in Economics and Management and Part Is in Engineering, Economics and Management or Materials, Economics and Management

高鸿业版《宏观经济学》课后习题答案（13-17章）

The monopolist is the only firm in the industry. Therefore, they face the entire demand curve. Profits are given by total revenue minus total costs. π = p(y)y − c(y). p(y) is the inverse demand curve

Production requires inputs — factors of production — for example, labour and capital equipment. A production set is the set of outputs feasible given a particular combination of inputs. The production function

There is another way to decompose the price effect. For simplicity consider a consumer with fixed income m. The Hicks decomposition involves pivoting the budget line around the initial indifference curve rather than the initial bundle. The diagram below illustrates for a price decrease in good 1

The last lecture investigated which bundle of goods the consumer prefers. However, goods cost money and the consumer cannot afford to buy indefinite amounts of each good

There are two countries, Home (H) and Foreign (F). There are two goods, units of wine (Qw) and cheese (Qc). Suppose there is one factor of production, labour, which is available in amounts L and L

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 — 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