This document summarizes key concepts from Chapter 17 of N. Gregory Mankiw's Principles of Economics, 9th Edition relating to oligopoly. It discusses how oligopolies have only a few sellers offering similar products, leading to interdependent decision-making that can be modeled using game theory. Under oligopoly, firms face tensions between cooperation to act like a monopoly and self-interest. The document outlines different oligopoly models and equilibrium concepts, such as duopoly, collusion, cartels and the Nash equilibrium.
This document summarizes key concepts about monopolistic competition from an economics textbook. It discusses how monopolistic competition involves many firms selling differentiated products, with free entry and exit in the long-run leading to zero economic profits. Firms choose price and quantity like a monopoly in the short-run but face a downward-sloping demand curve. The document compares monopolistic competition to perfect competition and monopoly. It also discusses the social costs and benefits of advertising in monopolistically competitive industries.
Premium Ch 14 Firms in Competitive Markets.pptxaxmedxasancali1
This document provides an overview of firms operating in perfectly competitive markets. It defines key concepts such as marginal revenue, total revenue, and average revenue. It explains that for competitive firms, marginal revenue is equal to price. The document also discusses how competitive firms determine the profit-maximizing quantity of output by producing where marginal revenue equals marginal cost. It describes the factors that would lead a competitive firm to shut down in the short run or exit the market in the long run. Finally, it explains how the market supply curve is derived by summing the individual supply curves of the many competitive firms in the industry.
This document provides an overview of externalities and how they can lead to inefficient market outcomes. It discusses:
1) What externalities are and how they can be negative or positive, depending on their impact on third parties. Negative externalities like pollution mean the market produces too much of a good, while positive externalities mean too little is produced.
2) How public policies like taxes or subsidies can "internalize" externalities by making producers and consumers consider these external impacts. A tax on pollution would align private and social costs, leading to the efficient level of production.
3) Examples of both negative externalities like air pollution and positive externalities like vaccination. The document analyzes these situations using demand
The document discusses the costs of production for a firm. It provides two examples:
1) Farmer Jack's wheat production, which shows how costs like labor wages and land rent contribute to total costs. Marginal product and costs are defined.
2) A general example of fixed, variable, and total costs. It shows how average costs like AFC, AVC, and ATC change with quantity and can be U-shaped. Marginal cost is also examined.
Monopoly_Chapter 15_Macroeconomics_ Mankew power point slidesdjalex035
This chapter discusses monopoly markets. It begins by defining a monopoly as a sole seller of a product without close substitutes. Monopolies arise due to barriers to entry, including ownership of key resources, government protections like patents, or natural monopolies where large scale production is more efficient. As the sole seller, a monopoly faces a downward sloping demand curve and is a price maker, unlike competitive firms which are price takers. The chapter then analyzes how monopolies determine price and quantity to maximize profits by producing at the quantity where marginal revenue equals marginal cost. This results in the monopoly price exceeding average cost and the firm earning economic profits.
1) The document discusses the characteristics and behavior of firms operating in perfectly competitive markets. It addresses factors like revenue, costs, and profit maximization.
2) A competitive firm is a price taker and will produce at the quantity where marginal revenue equals marginal cost, as this maximizes profits.
3) The marginal cost curve represents the firm's supply curve - at a higher price, the profit-maximizing quantity supplied increases as costs are covered at a greater output level.
This chapter discusses how government policies like price controls and taxes can affect market outcomes. Price ceilings, which set a legal maximum price, typically cause shortages by creating a gap between the maximum price and the market equilibrium price. Price floors, which set a legal minimum price, typically cause surpluses by creating a gap between the minimum price and the market equilibrium price. Taxes can be levied on buyers or sellers, but they have similar effects by driving a wedge between the price buyers pay and sellers receive. The incidence of a tax, or how the burden is shared, depends on the elasticities of supply and demand.
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1. The document discusses the concept of elasticity and how it can help understand how variables respond to changes in other variables.
2. It provides examples of different types of elasticities including price elasticity of demand, which measures how quantity demanded responds to changes in price. Demand is more elastic when good substitutes exist, a good is a luxury, the good is narrowly defined, or in the long run.
3. The slope of the demand curve is related to elasticity, with flatter curves indicating more elastic demand. Demand can be perfectly inelastic, inelastic, unit elastic, elastic, or
This document summarizes key concepts about monopolistic competition from an economics textbook. It discusses how monopolistic competition involves many firms selling differentiated products, with free entry and exit in the long-run leading to zero economic profits. Firms choose price and quantity like a monopoly in the short-run but face a downward-sloping demand curve. The document compares monopolistic competition to perfect competition and monopoly. It also discusses the social costs and benefits of advertising in monopolistically competitive industries.
Premium Ch 14 Firms in Competitive Markets.pptxaxmedxasancali1
This document provides an overview of firms operating in perfectly competitive markets. It defines key concepts such as marginal revenue, total revenue, and average revenue. It explains that for competitive firms, marginal revenue is equal to price. The document also discusses how competitive firms determine the profit-maximizing quantity of output by producing where marginal revenue equals marginal cost. It describes the factors that would lead a competitive firm to shut down in the short run or exit the market in the long run. Finally, it explains how the market supply curve is derived by summing the individual supply curves of the many competitive firms in the industry.
This document provides an overview of externalities and how they can lead to inefficient market outcomes. It discusses:
1) What externalities are and how they can be negative or positive, depending on their impact on third parties. Negative externalities like pollution mean the market produces too much of a good, while positive externalities mean too little is produced.
2) How public policies like taxes or subsidies can "internalize" externalities by making producers and consumers consider these external impacts. A tax on pollution would align private and social costs, leading to the efficient level of production.
3) Examples of both negative externalities like air pollution and positive externalities like vaccination. The document analyzes these situations using demand
The document discusses the costs of production for a firm. It provides two examples:
1) Farmer Jack's wheat production, which shows how costs like labor wages and land rent contribute to total costs. Marginal product and costs are defined.
2) A general example of fixed, variable, and total costs. It shows how average costs like AFC, AVC, and ATC change with quantity and can be U-shaped. Marginal cost is also examined.
Monopoly_Chapter 15_Macroeconomics_ Mankew power point slidesdjalex035
This chapter discusses monopoly markets. It begins by defining a monopoly as a sole seller of a product without close substitutes. Monopolies arise due to barriers to entry, including ownership of key resources, government protections like patents, or natural monopolies where large scale production is more efficient. As the sole seller, a monopoly faces a downward sloping demand curve and is a price maker, unlike competitive firms which are price takers. The chapter then analyzes how monopolies determine price and quantity to maximize profits by producing at the quantity where marginal revenue equals marginal cost. This results in the monopoly price exceeding average cost and the firm earning economic profits.
1) The document discusses the characteristics and behavior of firms operating in perfectly competitive markets. It addresses factors like revenue, costs, and profit maximization.
2) A competitive firm is a price taker and will produce at the quantity where marginal revenue equals marginal cost, as this maximizes profits.
3) The marginal cost curve represents the firm's supply curve - at a higher price, the profit-maximizing quantity supplied increases as costs are covered at a greater output level.
This chapter discusses how government policies like price controls and taxes can affect market outcomes. Price ceilings, which set a legal maximum price, typically cause shortages by creating a gap between the maximum price and the market equilibrium price. Price floors, which set a legal minimum price, typically cause surpluses by creating a gap between the minimum price and the market equilibrium price. Taxes can be levied on buyers or sellers, but they have similar effects by driving a wedge between the price buyers pay and sellers receive. The incidence of a tax, or how the burden is shared, depends on the elasticities of supply and demand.
P
Q
D
$200
12
$250
10
1. The document discusses the concept of elasticity and how it can help understand how variables respond to changes in other variables.
2. It provides examples of different types of elasticities including price elasticity of demand, which measures how quantity demanded responds to changes in price. Demand is more elastic when good substitutes exist, a good is a luxury, the good is narrowly defined, or in the long run.
3. The slope of the demand curve is related to elasticity, with flatter curves indicating more elastic demand. Demand can be perfectly inelastic, inelastic, unit elastic, elastic, or
Mankiew chapter 7 Consumers, Producers, and the Efficiency of MarketsAbd ELRahman ALFar
What is consumer surplus? How is it related to the demand curve?
What is producer surplus? How is it related to the supply curve?
Do markets produce a desirable allocation of resources? Or could the market outcome be improved upon?
The document discusses the characteristics and behavior of firms in a perfectly competitive market. It defines a competitive market as having many small firms and buyers, homogeneous products, and free entry and exit. In the short run, individual firms maximize profits by producing where marginal revenue equals marginal cost. In the long run, firms enter and exit the market until price equals minimum average total cost and profits are zero. The market supply curve is determined by the marginal cost curves of individual firms.
This document discusses the costs of taxation according to microeconomic principles. It explains that a tax reduces consumer surplus, producer surplus, and total surplus by creating a deadweight loss. The size of the deadweight loss depends on the price elasticities of supply and demand - more elastic demand or supply leads to a larger deadweight loss. Increasing the size of an existing tax causes the deadweight loss to rise more than proportionately and causes tax revenue to initially rise and then fall, following a Laffer curve pattern.
A monopoly is a sole seller of a product without close substitutes. It faces a downward-sloping demand curve and is a price maker. A monopoly's marginal revenue is below price. It maximizes profits by producing where marginal revenue equals marginal cost and charging a price above marginal cost. This leads to deadweight loss from producing a quantity below the efficient level. Policymakers address this through antitrust laws, regulation, or public ownership.
This document discusses supply and demand. It begins by asking questions about factors that affect demand and supply, and how supply and demand determine price and quantity. It then defines markets and competition. The rest of the document discusses the concepts of demand, including demand schedules and curves. It explains individual demand versus market demand. It also discusses factors that can shift the demand curve, like number of buyers, income, prices of related goods, tastes, and expectations. Similarly, it covers the concepts of supply, including supply schedules and curves, as well as factors that shift the supply curve, like input prices, technology, number of sellers, and expectations. In summary, it provides an overview of the key microeconomic concepts of supply, demand,
This document summarizes key concepts from an economics textbook chapter on oligopoly. It discusses how oligopoly market structures have a small number of firms producing similar products. It provides examples of concentration ratios in different industries. It then uses a cell phone duopoly example to illustrate possible outcomes like collusion versus competition. Game theory, including the prisoner's dilemma, helps explain why collusion is difficult to sustain even when it would benefit firms. Overall, the document analyzes market outcomes and pricing under oligopoly compared to perfect competition and monopoly.
Chapter 18-The Markets for the Factors of Production.pptxsgrQuliyev
This document summarizes key concepts from Chapter 18 of N. Gregory Mankiw's Principles of Economics, 9th Edition relating to factor markets. It discusses the derived demand for factors of production from firms' production decisions. Labor demand depends on firms' marginal productivity of labor and profit maximization. The demand and supply of labor determines equilibrium wages. Immigration can impact wages for different types of workers. Equilibrium rental prices for land and capital also equal their marginal productivity. Productivity growth has historically driven increases in real wages over time.
- Imperfect competition refers to market structures between perfect competition and pure monopoly, including oligopoly and monopolistic competition.
- Oligopoly is characterized by a few sellers offering similar products, with firms monitoring each other's actions. Monopolistic competition has many firms selling differentiated products.
- In oligopoly, firms would benefit most by cooperating like a monopoly but competition makes this difficult to sustain, resulting in an equilibrium with higher output and price than a monopoly.
In a perfectly competitive market:
- Many buyers and sellers exist
- Firms are price takers and the actions of any single firm do not impact the market price
- In the long run, firms will enter or exit the market until price equals minimum average total cost and economic profit is zero.
The document discusses consumer surplus, producer surplus, and how markets allocate resources efficiently. It defines:
- Consumer surplus as what consumers are willing to pay minus the price paid, and how it relates to the demand curve.
- Producer surplus as the price received minus costs of production, and how it relates to the supply curve.
- An efficient allocation as one that maximizes total surplus by having goods consumed by those valuing them most and produced by lowest cost producers.
The document evaluates an equilibrium in terms of efficiency using demand and supply curves to show buyers and sellers that transact value the good most and have lowest costs.
This document discusses monopolistic competition as a market structure between perfect competition and monopoly. Key points include:
- Under monopolistic competition, many firms sell differentiated products and free entry leads to zero long-run economic profits.
- Each firm faces a downward-sloping demand curve and can set prices above marginal cost in the short-run. In the long-run, entry drives prices down to average total cost.
- Compared to perfect competition, monopolistic competition results in excess capacity and prices above marginal cost, reducing efficiency. However, policy solutions are difficult given firms earn zero profits.
- Product differentiation encourages advertising and branding, which have debated social costs and benefits in terms of competition and consumer information.
CH-6 Supply, Demand, and Government Policies.pdfchhornqw
This document discusses how governments intervene in markets through policies like price controls and taxes. It provides examples of price ceilings, price floors, and taxes, and explains how each policy affects market outcomes. Specifically, it notes that a binding price ceiling below the equilibrium price causes a shortage, while a binding price floor above equilibrium causes a surplus. It also explains that a tax imposed on either buyers or sellers reduces the equilibrium quantity, and the incidence of the tax depends on supply and demand elasticities.
This document discusses the concept of oligopoly, which refers to a market structure with a small number of firms producing similar or identical products. The key feature of oligopoly is the tension between cooperation and self-interest among firms. While cooperating to act as a monopolist would be most profitable, firms have an incentive to compete by increasing their own production. As a result, oligopolies typically produce more and charge lower prices than a monopoly, but less and higher than a competitive market. Game theory, such as the prisoner's dilemma, demonstrates why cooperation is difficult to maintain in oligopolies.
This document provides an overview of the theory of consumer choice. It introduces key concepts like the budget constraint, indifference curves, marginal rate of substitution, and consumer optimization. The budget constraint represents the combinations of goods a consumer can afford based on prices and income. Indifference curves represent combinations of goods that provide equal utility. Consumers optimize by choosing the highest indifference curve possible given their budget constraint. The theory is then applied to explain consumer decisions around income and price changes, labor supply, and saving.
measuring the cost of living
Consumer Price Index
How the CPI Is Calculated
Problems with the CPI
Contrasting the CPI and GDP Deflator
Correcting Variables for Inflation:
This document discusses monopolies and monopoly power. It defines a monopoly as a sole seller in a market that faces a downward-sloping demand curve. Monopolies maximize profits by producing where marginal cost equals marginal revenue. Unlike competitive firms, monopolies set price above marginal cost, resulting in deadweight loss. Governments address monopoly power through antitrust laws, price regulation, or public ownership.
Chapter 07 Consumers, Producers And The Efficiency Of Marketsira78
This chapter discusses consumer surplus, producer surplus, and how markets allocate resources efficiently. It defines key concepts like demand, supply, willingness to pay, and opportunity cost. The document analyzes an example market equilibrium and finds that it maximizes total surplus, allocating resources efficiently by having goods produced by low-cost sellers and consumed by buyers who value them most. The market outcome cannot be improved upon, suggesting governments should generally not interfere with free markets.
- A monopoly is a sole seller in a market that faces a downward-sloping demand curve. It is a price maker unlike competitive firms.
- A monopoly maximizes profits by producing where marginal revenue equals marginal cost and charging a price above marginal cost.
- This results in a lower quantity and higher price than would be socially optimal, causing deadweight loss.
- Governments address monopoly power through antitrust laws, regulation, or public ownership to increase competition and efficiency.
The document discusses the costs of taxation, including how taxes affect consumer surplus, producer surplus, and total surplus. It explains that the deadweight loss of a tax is the reduction in total surplus that results from the market distortion caused by the tax. The size of the deadweight loss depends on the price elasticities of supply and demand - the more elastic they are, the larger the deadweight loss will be. Doubling or tripling a tax causes the deadweight loss to increase by more than the amount of the tax increase. Tax revenue initially increases with tax size but eventually falls as the tax further reduces the size of the market.
This chapter discusses elasticity, which measures how responsive one variable is to changes in another variable. It focuses on price elasticity of demand, which measures how much quantity demanded responds to changes in price. Price elasticity is calculated as the percentage change in quantity divided by the percentage change in price. Examples are used to illustrate factors that determine whether demand is elastic or inelastic, such as availability of substitutes. The elasticity also depends on whether a good is a necessity. The chapter explores how elasticity is related to the slope of the demand curve and total revenue.
Chapter 02 Thinking Like an Economist Business Economices.pptxTanveerAhmed272451
The document is a chapter from N. Gregory Mankiw's Principles of Economics textbook. It discusses how economists use the scientific method to develop theories, collect data, analyze results, and test theories. It provides examples of economic models like the circular flow diagram and production possibilities frontier that help simplify and explain economic concepts. The chapter also discusses how economists take different approaches based on their values and scientific judgments, and provides propositions about economic issues that most economists agree on.
Mankiew chapter 7 Consumers, Producers, and the Efficiency of MarketsAbd ELRahman ALFar
What is consumer surplus? How is it related to the demand curve?
What is producer surplus? How is it related to the supply curve?
Do markets produce a desirable allocation of resources? Or could the market outcome be improved upon?
The document discusses the characteristics and behavior of firms in a perfectly competitive market. It defines a competitive market as having many small firms and buyers, homogeneous products, and free entry and exit. In the short run, individual firms maximize profits by producing where marginal revenue equals marginal cost. In the long run, firms enter and exit the market until price equals minimum average total cost and profits are zero. The market supply curve is determined by the marginal cost curves of individual firms.
This document discusses the costs of taxation according to microeconomic principles. It explains that a tax reduces consumer surplus, producer surplus, and total surplus by creating a deadweight loss. The size of the deadweight loss depends on the price elasticities of supply and demand - more elastic demand or supply leads to a larger deadweight loss. Increasing the size of an existing tax causes the deadweight loss to rise more than proportionately and causes tax revenue to initially rise and then fall, following a Laffer curve pattern.
A monopoly is a sole seller of a product without close substitutes. It faces a downward-sloping demand curve and is a price maker. A monopoly's marginal revenue is below price. It maximizes profits by producing where marginal revenue equals marginal cost and charging a price above marginal cost. This leads to deadweight loss from producing a quantity below the efficient level. Policymakers address this through antitrust laws, regulation, or public ownership.
This document discusses supply and demand. It begins by asking questions about factors that affect demand and supply, and how supply and demand determine price and quantity. It then defines markets and competition. The rest of the document discusses the concepts of demand, including demand schedules and curves. It explains individual demand versus market demand. It also discusses factors that can shift the demand curve, like number of buyers, income, prices of related goods, tastes, and expectations. Similarly, it covers the concepts of supply, including supply schedules and curves, as well as factors that shift the supply curve, like input prices, technology, number of sellers, and expectations. In summary, it provides an overview of the key microeconomic concepts of supply, demand,
This document summarizes key concepts from an economics textbook chapter on oligopoly. It discusses how oligopoly market structures have a small number of firms producing similar products. It provides examples of concentration ratios in different industries. It then uses a cell phone duopoly example to illustrate possible outcomes like collusion versus competition. Game theory, including the prisoner's dilemma, helps explain why collusion is difficult to sustain even when it would benefit firms. Overall, the document analyzes market outcomes and pricing under oligopoly compared to perfect competition and monopoly.
Chapter 18-The Markets for the Factors of Production.pptxsgrQuliyev
This document summarizes key concepts from Chapter 18 of N. Gregory Mankiw's Principles of Economics, 9th Edition relating to factor markets. It discusses the derived demand for factors of production from firms' production decisions. Labor demand depends on firms' marginal productivity of labor and profit maximization. The demand and supply of labor determines equilibrium wages. Immigration can impact wages for different types of workers. Equilibrium rental prices for land and capital also equal their marginal productivity. Productivity growth has historically driven increases in real wages over time.
- Imperfect competition refers to market structures between perfect competition and pure monopoly, including oligopoly and monopolistic competition.
- Oligopoly is characterized by a few sellers offering similar products, with firms monitoring each other's actions. Monopolistic competition has many firms selling differentiated products.
- In oligopoly, firms would benefit most by cooperating like a monopoly but competition makes this difficult to sustain, resulting in an equilibrium with higher output and price than a monopoly.
In a perfectly competitive market:
- Many buyers and sellers exist
- Firms are price takers and the actions of any single firm do not impact the market price
- In the long run, firms will enter or exit the market until price equals minimum average total cost and economic profit is zero.
The document discusses consumer surplus, producer surplus, and how markets allocate resources efficiently. It defines:
- Consumer surplus as what consumers are willing to pay minus the price paid, and how it relates to the demand curve.
- Producer surplus as the price received minus costs of production, and how it relates to the supply curve.
- An efficient allocation as one that maximizes total surplus by having goods consumed by those valuing them most and produced by lowest cost producers.
The document evaluates an equilibrium in terms of efficiency using demand and supply curves to show buyers and sellers that transact value the good most and have lowest costs.
This document discusses monopolistic competition as a market structure between perfect competition and monopoly. Key points include:
- Under monopolistic competition, many firms sell differentiated products and free entry leads to zero long-run economic profits.
- Each firm faces a downward-sloping demand curve and can set prices above marginal cost in the short-run. In the long-run, entry drives prices down to average total cost.
- Compared to perfect competition, monopolistic competition results in excess capacity and prices above marginal cost, reducing efficiency. However, policy solutions are difficult given firms earn zero profits.
- Product differentiation encourages advertising and branding, which have debated social costs and benefits in terms of competition and consumer information.
CH-6 Supply, Demand, and Government Policies.pdfchhornqw
This document discusses how governments intervene in markets through policies like price controls and taxes. It provides examples of price ceilings, price floors, and taxes, and explains how each policy affects market outcomes. Specifically, it notes that a binding price ceiling below the equilibrium price causes a shortage, while a binding price floor above equilibrium causes a surplus. It also explains that a tax imposed on either buyers or sellers reduces the equilibrium quantity, and the incidence of the tax depends on supply and demand elasticities.
This document discusses the concept of oligopoly, which refers to a market structure with a small number of firms producing similar or identical products. The key feature of oligopoly is the tension between cooperation and self-interest among firms. While cooperating to act as a monopolist would be most profitable, firms have an incentive to compete by increasing their own production. As a result, oligopolies typically produce more and charge lower prices than a monopoly, but less and higher than a competitive market. Game theory, such as the prisoner's dilemma, demonstrates why cooperation is difficult to maintain in oligopolies.
This document provides an overview of the theory of consumer choice. It introduces key concepts like the budget constraint, indifference curves, marginal rate of substitution, and consumer optimization. The budget constraint represents the combinations of goods a consumer can afford based on prices and income. Indifference curves represent combinations of goods that provide equal utility. Consumers optimize by choosing the highest indifference curve possible given their budget constraint. The theory is then applied to explain consumer decisions around income and price changes, labor supply, and saving.
measuring the cost of living
Consumer Price Index
How the CPI Is Calculated
Problems with the CPI
Contrasting the CPI and GDP Deflator
Correcting Variables for Inflation:
This document discusses monopolies and monopoly power. It defines a monopoly as a sole seller in a market that faces a downward-sloping demand curve. Monopolies maximize profits by producing where marginal cost equals marginal revenue. Unlike competitive firms, monopolies set price above marginal cost, resulting in deadweight loss. Governments address monopoly power through antitrust laws, price regulation, or public ownership.
Chapter 07 Consumers, Producers And The Efficiency Of Marketsira78
This chapter discusses consumer surplus, producer surplus, and how markets allocate resources efficiently. It defines key concepts like demand, supply, willingness to pay, and opportunity cost. The document analyzes an example market equilibrium and finds that it maximizes total surplus, allocating resources efficiently by having goods produced by low-cost sellers and consumed by buyers who value them most. The market outcome cannot be improved upon, suggesting governments should generally not interfere with free markets.
- A monopoly is a sole seller in a market that faces a downward-sloping demand curve. It is a price maker unlike competitive firms.
- A monopoly maximizes profits by producing where marginal revenue equals marginal cost and charging a price above marginal cost.
- This results in a lower quantity and higher price than would be socially optimal, causing deadweight loss.
- Governments address monopoly power through antitrust laws, regulation, or public ownership to increase competition and efficiency.
The document discusses the costs of taxation, including how taxes affect consumer surplus, producer surplus, and total surplus. It explains that the deadweight loss of a tax is the reduction in total surplus that results from the market distortion caused by the tax. The size of the deadweight loss depends on the price elasticities of supply and demand - the more elastic they are, the larger the deadweight loss will be. Doubling or tripling a tax causes the deadweight loss to increase by more than the amount of the tax increase. Tax revenue initially increases with tax size but eventually falls as the tax further reduces the size of the market.
This chapter discusses elasticity, which measures how responsive one variable is to changes in another variable. It focuses on price elasticity of demand, which measures how much quantity demanded responds to changes in price. Price elasticity is calculated as the percentage change in quantity divided by the percentage change in price. Examples are used to illustrate factors that determine whether demand is elastic or inelastic, such as availability of substitutes. The elasticity also depends on whether a good is a necessity. The chapter explores how elasticity is related to the slope of the demand curve and total revenue.
Chapter 02 Thinking Like an Economist Business Economices.pptxTanveerAhmed272451
The document is a chapter from N. Gregory Mankiw's Principles of Economics textbook. It discusses how economists use the scientific method to develop theories, collect data, analyze results, and test theories. It provides examples of economic models like the circular flow diagram and production possibilities frontier that help simplify and explain economic concepts. The chapter also discusses how economists take different approaches based on their values and scientific judgments, and provides propositions about economic issues that most economists agree on.
Chapter 26 Saving, Investment, and the Financial System.pptxanisadiandraoktavian
This document summarizes key concepts from Chapter 26 of N. Gregory Mankiw's Principles of Economics, 9th Edition relating to the financial system. It discusses how financial institutions like markets and intermediaries help match savers and borrowers. It also covers accounting identities showing the relationship between saving, investment, and other macroeconomic variables. Finally, it introduces the market for loanable funds where interest rates clear the market.
This document provides an overview of Chapter 16 from Mankiw's Principles of Microeconomics textbook. The chapter objectives are outlined, which include explaining monopoly market structures and barriers to entry that allow monopolies to form. The document then discusses why monopolies arise due to barriers like monopoly resources, government regulation, and natural monopolies where large scale production leads to lower costs. It also examines how monopolies make production and pricing decisions, focusing on their downward sloping demand curve and the relationship between marginal revenue, price, and profit maximization.
This document summarizes key concepts from Chapter 23 of N. Gregory Mankiw's Principles of Macroeconomics, 9th Edition. It defines GDP as the total market value of final goods and services produced within an economy in a given period of time. GDP can be measured by total income (sum of wages, profits, interest and rent) or by total expenditure (sum of consumption, investment, government spending, and net exports). It also distinguishes between nominal GDP measured at current prices and real GDP measured in constant prices to account for inflation.
This document summarizes key concepts from Chapter 23 of N. Gregory Mankiw's Principles of Economics, 9th Edition relating to measuring a nation's income. It introduces GDP as a measure of total income and expenditure in an economy. GDP is broken down into consumption, investment, government spending, and net exports. The concepts of nominal GDP, real GDP, and GDP deflator are explained to distinguish GDP adjusted for inflation. A table and graph show real GDP growth in the US economy over the past 50 years, along with recessions that interrupted periods of growth.
This document discusses key economic concepts and terms. It begins by defining economics and discussing the global economic crisis that began in the late 2000s. It then examines how fiscal and monetary policy impact the economy. The document also explains and evaluates the free market system and the concept of supply and demand. Finally, it explores planned market systems, mixed market systems, and tools for evaluating economic performance such as GDP, unemployment, inflation, and productivity.
The document outlines 10 principles of economics across 3 categories - how people make decisions, how people interact, and how the economy as a whole works. The key principles are that people face tradeoffs, respond rationally to incentives, can benefit from specialization and trade, and markets are generally effective but sometimes require government intervention to address externalities or market failures. Productivity is the ultimate source of living standards, inflation is ultimately caused by excessive money growth, and there is a short-run tradeoff between inflation and unemployment.
The document summarizes an interview discussing ways to improve the yieldco model of financing renewable energy projects. It finds that yieldcos should focus on improving operating cost structure, driving down development and construction costs through synergies with developers, and enhancing asset lifetimes. A yieldco's value comes from dividend value, new asset purchases, reinvestment, operational efficiencies, and cost reductions shared with developers. Better financial modeling of these factors can provide a more compelling value proposition for yieldcos.
This document outlines 10 principles of economics from the textbook "Principles of Economics" by N. Gregory Mankiw. It discusses fundamental lessons about individual decision making, interactions among people, and the economy as a whole. Specifically, it summarizes that people face trade-offs and respond to incentives; markets are generally good but governments can remedy failures; productivity drives living standards; and inflation results from increasing the money supply, creating short-run trade-offs with unemployment.
Be chap6 oligopoly models and game theory jan2019fadzliskc
This document provides an overview of game theory concepts. It discusses key elements of games such as players, strategies, and payoffs. It also covers different types of games including simultaneous-move games, sequential-move games, one-shot games, and repeated games. Equilibrium strategies such as dominant strategies and Nash equilibria are explained. Examples of pricing games and coordination games are used to illustrate these concepts. Trigger strategies are discussed as a way for firms to potentially collude without fear of cheating in infinitely or finitely repeated games.
Chapter 01 the environment of business - an introduction to business and econ...Nur Khalida
This document provides an overview of key topics in an introductory business and economics chapter, including:
1) It defines business as the organized effort of individuals to produce and sell goods and services for a profit. It also discusses the four factors of production.
2) It outlines two main types of economic systems - capitalism and command economies (socialism and communism). Capitalism relies on private ownership and markets, while command economies involve greater government control.
3) It discusses measuring economic performance through concepts like productivity and discusses how the US has a mixed economy with elements of both capitalism and socialism.
1) Managers of companies face three conflicting goals: maximizing value, share price, and taking advantage of mispricing. They may cater to irrational investor beliefs to boost share price through actions like changing investment strategies or payouts.
2) Evidence shows companies time stock issues and repurchases, and acquisitions using overvalued stock, to benefit at the expense of other shareholders. Managers and targets may agree to inefficient mergers due to short-term gains.
3) Studies found the proportion of dividend-paying firms fell from over 50% to below 20% from the 1970s-1990s partly due to company changes, but also dividend policy catering to investor preferences. Initiations and omissions
1) Managers of companies face three conflicting goals: maximizing value, share price, and taking advantage of mispricing. They may cater to irrational investor beliefs to boost share price over rational value.
2) Evidence shows companies time stock issues and repurchases, and acquisitions using overvalued stock, to benefit at the expense of new shareholders. Managers and target managers have incentives to partake in value-destroying mergers.
3) Dividend policies also cater to investor preferences, with initiations and omissions tracking rises and falls in the dividend premium over four distinct payout periods since the 1960s.
This document discusses perfect competition and monopoly markets. It will examine how competitive firms decide output levels by producing at the quantity where marginal revenue equals marginal cost to maximize profits. A monopoly is a sole seller of a product without close substitutes that is a price maker rather than price taker. Monopolies arise due to barriers to entry such as key resources, patents, or efficient large-scale production. Monopolies also maximize profits by producing where marginal revenue equals marginal cost and setting the price for that quantity of output.
Lecture slide titled Fraud Risk Mitigation, Webinar Lecture Delivered at the Society for West African Internal Audit Practitioners (SWAIAP) on Wednesday, November 8, 2023.
The Rise of Generative AI in Finance: Reshaping the Industry with Synthetic DataChampak Jhagmag
In this presentation, we will explore the rise of generative AI in finance and its potential to reshape the industry. We will discuss how generative AI can be used to develop new products, combat fraud, and revolutionize risk management. Finally, we will address some of the ethical considerations and challenges associated with this powerful technology.
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
5 Tips for Creating Standard Financial ReportsEasyReports
Well-crafted financial reports serve as vital tools for decision-making and transparency within an organization. By following the undermentioned tips, you can create standardized financial reports that effectively communicate your company's financial health and performance to stakeholders.
2. Elemental Economics - Mineral demand.pdfNeal Brewster
After this second you should be able to: Explain the main determinants of demand for any mineral product, and their relative importance; recognise and explain how demand for any product is likely to change with economic activity; recognise and explain the roles of technology and relative prices in influencing demand; be able to explain the differences between the rates of growth of demand for different products.