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Micro 19.pdf
- 4. Quizmaster
- 7. The universe is fi nite, its resources fi nite If life is left unchecked, life will cease to exist
- 10. Total Life Years = Population x Life Expectancy
- 11. 0 30 60 90 0 1 2 3 4 5 6 7 8 Quantifying Life Population in Billions Life Expectancy in Years 2020 2022 +700% +157% 28.5 billion to 585.6 billion = 20.5 x = 1,954% increase 73.2 8.0 585.6 1800 28.5
- 12. Q P Perfect Competition Marginal Cost MC Average Cost ATC Total Cost $ Quantity Pro fi t Demand=MR Total Revenue
- 13. Marginal Cost MC Q P Marginal Revenue MR Monopoly Average Cost ATC Cost $ Q Pro fi t Demand Deadweight Loss Consumer Surplus 1. MR=MC? 2.TR= P x Q 3.TC=ATC x Q 4. Pro fi t =TR-TC or (P-ATC) x Q
- 15. Number Marginal Cost Total Cost Average Cost 1 5 2 4 3 6 4 9 5 16
- 16. Number Marginal Cost Total Cost Average Cost 1 5 5 5 2 4 9 4.5 3 6 15 5 4 9 24 6 5 16 40 8
- 17. Number Marginal Cost Total Cost Average Cost 1 40 2 60 3 90 4 160 5 250
- 18. Number Marginal Cost Total Cost Average Cost 1 40 40 40 2 20 60 30 3 30 90 30 4 70 160 40 5 90 250 50
- 19. Number Marginal Cost Total Cost Average Cost 1 300 2 420 3 600 4 800 5 1500
- 20. Number Marginal Cost Total Cost Average Cost 1 300 300 300 2 540 840 420 3 960 1800 600 4 1400 3200 800 5 4300 7500 1500
- 22. Q $ Monopolistic Competition D MR Short Run Long Run Steep Demand Demand Flattens
- 23. Q $ Short Run Long Run D MR MC ATC Pro fi t Pro fi ts disappear in the long run due to competition High Price Large Quantity Lower Price Lower Quantity QS Q P PS L L Demand Flattens Pro fi t Monopolistic Competition
- 24. D MR MC Competition fl attens the Demand Curve and squeezes pro fi ts. Pro fi ts
- 25. Q $ Market Competition Short Run Demand Short Run Marginal Revenue Long Run Demand Long Run Marginal Revenue Marginal Costs Average Total Costs QSR PSR QLR PLR
- 26. Monopolistic Competition Brand Competition Most firms are in this category Temporary Monopoly
- 28. Continuous Innovation Create Profits Use Profits to Create Repeat
- 29. Strategy Make profits before you lose your monopoly
- 31. Perfect Competition Monopoly Monopolistic Competition Oligopoly Number of Firms Many One Many Few Type of Product Identical Unique Brands Similar Ease of Entry Easy Blocked Easy Hard Demand D = MR D > MR Dynamic Game Theory Examples Commodities Rice Apples Utilities Government Brands Coke Apple Home Depot Lowes
- 32. Collusion Dominant Strategy Nash Equilibrium Cooperative Equilibrium Non-cooperative Equilibrium Key Terms
- 34. Oligopoly Cannot use usual methods Demand curves not obvious Complex Strategy
- 35. Oligopoly Don’t know Demand Curve Don’t know Marginal Revenue curve Don’t know where to fi nd pro fi t maximization point
- 37. Prisoner's Dilemma Pursuing the Dominant Strategy Results in Non-Cooperation and Leaves Everyone Worse Off
- 39. John Nash (1928 - 2015 ) Game Theory Nash Equilibrium Nobel 1994 A Beautiful Mind
- 42. Five Competitive Forces Existing Firms Potential Firms Substitutes Buyers Suppliers