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
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 =
A consumption externality is a situation where a consumer cares directly about another agent’s consumption or production of a particular good. An externality can be positive or negative: 1. Negative: Loud mobile phone use in public places. 2. Positive: Pipe smoking in enclosed public places
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
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 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
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
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
1. Confidence 自信 2. OXFORD UNIVERSITY 牛津大学 3. Bringing It All Back Home 满载而归 4. The Smile 微笑 5. To Win at Marriage, Learn to lose 赢得美满婚姻,要学会认输 6. China Gets Wired 中国进入网络化时代 7. And Now, Extreme Recruiting 招聘竞争白热化 8. Afraid of Your Computer 克服畏难心理 熟练使用电脑 9. Simplify Your Life 简化你的生活 10. A Chance of a lifetime 生命的机遇 11. Thief 小偷 12. 优秀的标准 13. 生活充满选择 14. 另一种爱 15. 足球知识知多少？ 16. INTEL 的 CEO 17. 纽约时报的 CEO 18. 苹果公司的 CEO 19. Panic on the Highway 山路历险记 20. Paradox of Our Times 我们这个时代的尴尬 21. The Rich Get Richer Faster than Ever 富翁比以往更快地变 富 22. My Irreplaceable Treasure 人生珍品 23. Investing in Vices 道德与投资 24. My Greatest Olympic Prize 我最珍贵的奥林匹克奖 25. A Damaged Man Has the Last Word on Diana 受伤保镖对 戴安娜作结语 26. Star Wars Returns to the Screens 星球大战重返银幕 27. Words of Wisdom for the Modern Age 现代智语 28. Hunger 饥饿 29. Every Breath You Take 注意你的每次呼吸 30. My Most Unforgettable Character 我最难忘的人 31. 爱要怎么说出口 32. The Love letter 迟到的情书 33. 面试中常被问及的问题 34. Caught in the Web of the Internet 沉湎因特网 35. Suns Hidden Twin Sta
