The document summarizes the contributions of early marginalist economists including Cournot, Dupuit, Gossen, and Thünen. It discusses how Cournot pioneered modern price theory for profit-maximizing firms and introduced mathematics into economic analysis. It describes how Dupuit defined concepts like consumer surplus, deadweight loss, and the demand curve. It explains how Gossen introduced the equimarginal principle of consumer behavior. It also outlines Thünen's theory of how resources are allocated to the production of goods.
This document provides an overview of the key ideas and contributors in the development of marginalism and microeconomic foundations. It summarizes the works of early marginalist thinkers such as Cournot, Dupuit, Gossen, Jevons, Menger, Wieser, Bohm-Bawerk, Edgeworth, Clark, and George. Their works established concepts like marginal utility, demand curves, diminishing marginal returns, opportunity cost, indifference curves, and the marginal productivity theory of factor returns. These ideas challenged existing economic thought and laid the groundwork for modern microeconomics by taking an analytical and marginal approach focused on individual decision-making.
The law of equi-marginal utility states that consumers will allocate their limited income across different goods in a way that equalizes the marginal utility per rupee spent. Specifically, the traditional statement is that a consumer will spend their money such that the last rupee spent on each good yields equal satisfaction. Alternatively, the modern statement is that marginal utility divided by price will be equal across goods, allowing consumers to maximize total utility. This law assumes consumers can purchase multiple goods and aims to explain how consumers allocate resources to maximize satisfaction given budget constraints.
The document discusses key concepts in welfare economics including consumer surplus, producer surplus, market efficiency, and the deadweight loss from taxation. It explains that:
1) Consumer surplus is the difference between what consumers are willing to pay and the actual price paid, while producer surplus is the difference between the price received and the lowest price producers are willing to accept.
2) A market is efficient when it maximizes total surplus, the sum of consumer and producer surplus.
3) Taxes create deadweight loss, which is a loss of total surplus, by reducing the quantity of goods traded and moving the market away from the efficient equilibrium. The deadweight loss is largest when demand and supply are more elastic.
1) Demand analysis examines how consumer demand for a product is determined based on factors like price, income, tastes, and prices of substitutes and complements. Consumer demand at the individual and market level can be modeled using demand functions.
2) At the individual level, consumers aim to maximize utility subject to a budget constraint. They allocate spending across goods until the marginal utility per rupee is equal for all goods. At the market level, demand is the sum of individual demands and is influenced by price, income, population, and other factors.
3) Demand functions express the quantitative relationship between demand for a product and its determinants. They can be linear or nonlinear. The slope of the linear demand
Just an extension to the demand theory for ISC economics, this chapter discusses consumer equilibrium with utility approach. Especially when goods are free, priced and two commodity case.
2022 The Theory of Utility .New ppt.pptxJQuanBruce
The document discusses the theory of consumer demand and utility theory. It explains that consumers seek to maximize utility given their budget constraints. There are two approaches to utility - the cardinal and ordinal approaches. The cardinal approach measures utility in "utils" while the ordinal only ranks preferences. The theory of marginal utility states that additional units of a good provide diminishing marginal utility. Consumers seek to equalize marginal utility per dollar across all goods purchased to achieve equilibrium. If the price of a good changes, consumption will adjust until equilibrium is restored.
This document provides an overview of the key ideas and contributors in the development of marginalism and microeconomic foundations. It summarizes the works of early marginalist thinkers such as Cournot, Dupuit, Gossen, Jevons, Menger, Wieser, Bohm-Bawerk, Edgeworth, Clark, and George. Their works established concepts like marginal utility, demand curves, diminishing marginal returns, opportunity cost, indifference curves, and the marginal productivity theory of factor returns. These ideas challenged existing economic thought and laid the groundwork for modern microeconomics by taking an analytical and marginal approach focused on individual decision-making.
The law of equi-marginal utility states that consumers will allocate their limited income across different goods in a way that equalizes the marginal utility per rupee spent. Specifically, the traditional statement is that a consumer will spend their money such that the last rupee spent on each good yields equal satisfaction. Alternatively, the modern statement is that marginal utility divided by price will be equal across goods, allowing consumers to maximize total utility. This law assumes consumers can purchase multiple goods and aims to explain how consumers allocate resources to maximize satisfaction given budget constraints.
The document discusses key concepts in welfare economics including consumer surplus, producer surplus, market efficiency, and the deadweight loss from taxation. It explains that:
1) Consumer surplus is the difference between what consumers are willing to pay and the actual price paid, while producer surplus is the difference between the price received and the lowest price producers are willing to accept.
2) A market is efficient when it maximizes total surplus, the sum of consumer and producer surplus.
3) Taxes create deadweight loss, which is a loss of total surplus, by reducing the quantity of goods traded and moving the market away from the efficient equilibrium. The deadweight loss is largest when demand and supply are more elastic.
1) Demand analysis examines how consumer demand for a product is determined based on factors like price, income, tastes, and prices of substitutes and complements. Consumer demand at the individual and market level can be modeled using demand functions.
2) At the individual level, consumers aim to maximize utility subject to a budget constraint. They allocate spending across goods until the marginal utility per rupee is equal for all goods. At the market level, demand is the sum of individual demands and is influenced by price, income, population, and other factors.
3) Demand functions express the quantitative relationship between demand for a product and its determinants. They can be linear or nonlinear. The slope of the linear demand
Just an extension to the demand theory for ISC economics, this chapter discusses consumer equilibrium with utility approach. Especially when goods are free, priced and two commodity case.
2022 The Theory of Utility .New ppt.pptxJQuanBruce
The document discusses the theory of consumer demand and utility theory. It explains that consumers seek to maximize utility given their budget constraints. There are two approaches to utility - the cardinal and ordinal approaches. The cardinal approach measures utility in "utils" while the ordinal only ranks preferences. The theory of marginal utility states that additional units of a good provide diminishing marginal utility. Consumers seek to equalize marginal utility per dollar across all goods purchased to achieve equilibrium. If the price of a good changes, consumption will adjust until equilibrium is restored.
Market failures such as externalities can cause markets to be inefficient and produce either too much or too little of a good relative to the social optimum. Negative externalities like pollution lead to an overallocation of resources, while positive externalities like education lead to underallocation. Government intervention through command-and-control policies or market-based policies like Pigouvian taxes or tradable permits can help internalize these externalities and achieve efficiency. However, collective action problems mean global issues like climate change require international agreements, though these remain non-binding with issues around equity and enforcement.
The document discusses the theory of consumer behavior and demand. It explains that consumers attempt to maximize their utility by allocating their limited income among goods. Utility can be measured cardinally using utils or ordinally using indifference curves. Consumer equilibrium occurs when marginal utility per rupee is equal for all goods, or when the indifference curve is tangent to the budget line. A change in prices or income can shift the budget line, impacting the consumer's optimal choice.
This document discusses consumer behavior theory from the cardinal utility perspective. It begins by introducing concepts like utility, marginal utility, and diminishing marginal utility. It then shows how consumer equilibrium is reached when the ratio of marginal utilities equals the ratio of prices. The relationship between marginal utility and demand curves is explained, with the demand curve being the marginal utility curve expressed in monetary terms. Consumer surplus is defined as the difference between the total willingness to pay and the total amount paid. An example is provided to illustrate consumer surplus calculations.
Into Econ Chapter 3 -1.pptx economics handoutReshidJewar
The document discusses consumer behavior theory and demand. It explains that consumers face a problem of choice when allocating their limited income among thousands of goods. Consumer behavior theory assumes consumers will maximize their utility or satisfaction given this constraint. Utility is subjective and can be measured ordinally or cardinally. The cardinal approach assigns numeric utility values while the ordinal only ranks preferences. Indifference curves and budget lines are used to depict the consumer's optimal choice that equalizes marginal utility per dollar across goods.
This document provides an overview of welfare economics. It discusses key concepts like demand and supply curves, consumer and producer surplus, deadweight loss, price controls, externalities, and the invisible hand theorem. It also covers Arthur Pigou's work on externalities and the Pigouvian tax. The compensation principle is explained as a decision rule for selecting between social states. Two case studies on the compensation principle and gasoline taxes are also presented. The document concludes with a brief mention of Amartya Sen's contributions to welfare economics through his utilitarian approach.
The document discusses the law of equi-marginal utility. It defines the law as stating that a consumer will allocate their limited income across different goods in a way that equalizes the marginal utility per rupee spent. Specifically, it says the law proposes that a consumer gets maximum satisfaction when the marginal utility divided by price is equal across goods (MUa/Pa = MUb/Pb = MUc/Pc). The document also provides the traditional and modern statements of the law, and discusses its importance as well as some criticisms.
Theory of consumer behavior cardinal approachTej Kiran
This document discusses consumer behavior theory and how consumers make choices under income constraints. It explains that consumers seek to maximize their utility, or satisfaction, from consuming goods and services. Utility is defined as the pleasure or satisfaction derived from consumption. Consumers are constrained by their incomes and must make choices within these limits. The concepts of total utility, marginal utility, diminishing marginal utility, and how consumers allocate their budgets to maximize utility are introduced. Cardinal and ordinal approaches to measuring utility are also outlined. The document provides examples and explanations of the law of diminishing marginal utility and the principle of equimarginal utility as consumers seek to optimize their satisfaction from consumption.
This document discusses concepts related to cardinal utility theory, including:
- The definition of utility and assumptions of cardinal utility theory
- The concepts of total utility, marginal utility, and the law of diminishing marginal utility
- Assumptions of the law of equi-marginal utility and how it relates to consumer equilibrium
- Determinants of consumer equilibrium like substitution and income effects from price changes
- Indifference curves and how they relate to budget constraints and consumer optimization
- The meaning of consumer surplus as the excess utility consumers receive over their total expenditures.
This document summarizes key concepts around market power and policy approaches. It discusses how price discrimination by monopolies increases output and profits compared to single-price monopolies. It also describes oligopolies and monopolistic competition as markets with some but not complete power, influenced by product differentiation and number of firms. The document outlines government policies for regulating natural monopolies, including state ownership, cost-plus regulation, and allowing private competition through bidding. It raises issues around determining costs and incentives under different regulatory models.
This document discusses concepts related to utility analysis in economics. It defines utility as the satisfaction derived from consumption and discusses how early economists assumed utility could be measured in cardinal units. It introduces the concepts of total utility, marginal utility, and how marginal utility decreases with increasing consumption due to the law of diminishing marginal utility. The document also discusses consumer equilibrium when prices are zero and when prices are not zero, as well as the concepts of consumer surplus, demand curves, and indifference curve analysis of ordinal utility.
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.
These slides include the different concepts of cardinal utility analysis and briefly show the assumptions, TU and MU, Law of diminishing utility analysis, and the law of equi-marginal utility, and finally, includes the limitations of cardinal utility analysis.
Utility theory proposes that consumers aim to maximize their total utility, or satisfaction, given budget constraints. There are two main approaches to measuring utility - cardinal and ordinal. The cardinal approach assumes utility can be quantitatively measured, while the ordinal approach only requires consumers can rank their preferences. Consumer equilibrium is reached when the marginal utility per dollar spent is equal across all goods purchased. Prices reflect marginal utility rather than total utility, explaining why essential goods like water are cheap despite high total utility, while luxury goods like diamonds are expensive due to low availability increasing marginal utility. Utility theory provides a framework for understanding consumer choice.
This document discusses oligopoly market structures. Key points include:
- Oligopoly is characterized by a market with few firms that dominate the industry. The firms may produce homogeneous or differentiated products.
- Duopoly is a specific type of oligopoly with only two dominant firms. The firms interact strategically and affect each other's output and pricing decisions.
- Oligopolies can be collusive, where firms formally or informally agree to reduce competition, or non-collusive where firms make independent output and pricing decisions.
- Cournot's duopoly model assumes two firms with identical costs that make output decisions assuming the other firm's output stays constant. The firms eventually reach a Nash equilibrium where
Theory of
Consumer
Behavior
Concept of utility, Cardinal utility, Law of diminishing marginal utility, Law of
Equi-marginal utility, Indifference curve analysis, Marginal rate of substitution,
Budget line, Consumer' equilibrium, Applications of indifference curves.
The document discusses several concepts related to sunk costs and rational decision making. It provides examples of how sunk costs can lead to irrational decisions through the sunk cost fallacy. Specifically, it discusses two hypothetical examples given by Richard Thaler where people decide to continue with plans or purchases even when it is no longer rational due to having already incurred some initial cost. The document also proposes models for incorporating sunk costs and transaction utility into rational decision making frameworks to better explain when the sunk cost fallacy occurs.
The document defines key economic concepts such as scarcity, opportunity cost, production possibility curve, and types of economies. It then discusses consumer theory including utility and diminishing marginal utility. Specifically:
1) Economics studies how individuals and societies make choices given scarce resources and unlimited wants. Opportunity cost is the next best choice given up when making a decision.
2) A production possibility curve illustrates the tradeoffs between two goods based on available resources. Shifting the curve shows how changes like technology affect what can be produced.
3) Economies differ in how decisions are made - socialist, capitalist, and mixed economies allocate resources in different ways. Consumer theory analyzes how utility and marginal utility influence consumption choices.
Utility refers to the satisfaction or benefit derived from consuming a good. The law of diminishing marginal utility states that as consumption of a good increases, the marginal utility of each additional unit decreases. The law of equi-marginal utility extends this to consumption of multiple goods, stating that a consumer will allocate their budget in a way that equalizes the marginal utility across goods. This occurs when a consumer spends their money in a way that maximizes total utility subject to their budget constraint.
The document discusses consumer behavior theory and the concept of indifference curves. It introduces three approaches to analyzing consumer behavior: Marshallian, cardinal utility, and ordinal utility. It then defines utility, explores its features and concepts like total, marginal, and diminishing utility. The document also explains indifference curves and their properties, including convexity and non-intersection. It discusses the budget line and how consumers reach equilibrium when maximizing satisfaction given prices and income.
Market failures such as externalities can cause markets to be inefficient and produce either too much or too little of a good relative to the social optimum. Negative externalities like pollution lead to an overallocation of resources, while positive externalities like education lead to underallocation. Government intervention through command-and-control policies or market-based policies like Pigouvian taxes or tradable permits can help internalize these externalities and achieve efficiency. However, collective action problems mean global issues like climate change require international agreements, though these remain non-binding with issues around equity and enforcement.
The document discusses the theory of consumer behavior and demand. It explains that consumers attempt to maximize their utility by allocating their limited income among goods. Utility can be measured cardinally using utils or ordinally using indifference curves. Consumer equilibrium occurs when marginal utility per rupee is equal for all goods, or when the indifference curve is tangent to the budget line. A change in prices or income can shift the budget line, impacting the consumer's optimal choice.
This document discusses consumer behavior theory from the cardinal utility perspective. It begins by introducing concepts like utility, marginal utility, and diminishing marginal utility. It then shows how consumer equilibrium is reached when the ratio of marginal utilities equals the ratio of prices. The relationship between marginal utility and demand curves is explained, with the demand curve being the marginal utility curve expressed in monetary terms. Consumer surplus is defined as the difference between the total willingness to pay and the total amount paid. An example is provided to illustrate consumer surplus calculations.
Into Econ Chapter 3 -1.pptx economics handoutReshidJewar
The document discusses consumer behavior theory and demand. It explains that consumers face a problem of choice when allocating their limited income among thousands of goods. Consumer behavior theory assumes consumers will maximize their utility or satisfaction given this constraint. Utility is subjective and can be measured ordinally or cardinally. The cardinal approach assigns numeric utility values while the ordinal only ranks preferences. Indifference curves and budget lines are used to depict the consumer's optimal choice that equalizes marginal utility per dollar across goods.
This document provides an overview of welfare economics. It discusses key concepts like demand and supply curves, consumer and producer surplus, deadweight loss, price controls, externalities, and the invisible hand theorem. It also covers Arthur Pigou's work on externalities and the Pigouvian tax. The compensation principle is explained as a decision rule for selecting between social states. Two case studies on the compensation principle and gasoline taxes are also presented. The document concludes with a brief mention of Amartya Sen's contributions to welfare economics through his utilitarian approach.
The document discusses the law of equi-marginal utility. It defines the law as stating that a consumer will allocate their limited income across different goods in a way that equalizes the marginal utility per rupee spent. Specifically, it says the law proposes that a consumer gets maximum satisfaction when the marginal utility divided by price is equal across goods (MUa/Pa = MUb/Pb = MUc/Pc). The document also provides the traditional and modern statements of the law, and discusses its importance as well as some criticisms.
Theory of consumer behavior cardinal approachTej Kiran
This document discusses consumer behavior theory and how consumers make choices under income constraints. It explains that consumers seek to maximize their utility, or satisfaction, from consuming goods and services. Utility is defined as the pleasure or satisfaction derived from consumption. Consumers are constrained by their incomes and must make choices within these limits. The concepts of total utility, marginal utility, diminishing marginal utility, and how consumers allocate their budgets to maximize utility are introduced. Cardinal and ordinal approaches to measuring utility are also outlined. The document provides examples and explanations of the law of diminishing marginal utility and the principle of equimarginal utility as consumers seek to optimize their satisfaction from consumption.
This document discusses concepts related to cardinal utility theory, including:
- The definition of utility and assumptions of cardinal utility theory
- The concepts of total utility, marginal utility, and the law of diminishing marginal utility
- Assumptions of the law of equi-marginal utility and how it relates to consumer equilibrium
- Determinants of consumer equilibrium like substitution and income effects from price changes
- Indifference curves and how they relate to budget constraints and consumer optimization
- The meaning of consumer surplus as the excess utility consumers receive over their total expenditures.
This document summarizes key concepts around market power and policy approaches. It discusses how price discrimination by monopolies increases output and profits compared to single-price monopolies. It also describes oligopolies and monopolistic competition as markets with some but not complete power, influenced by product differentiation and number of firms. The document outlines government policies for regulating natural monopolies, including state ownership, cost-plus regulation, and allowing private competition through bidding. It raises issues around determining costs and incentives under different regulatory models.
This document discusses concepts related to utility analysis in economics. It defines utility as the satisfaction derived from consumption and discusses how early economists assumed utility could be measured in cardinal units. It introduces the concepts of total utility, marginal utility, and how marginal utility decreases with increasing consumption due to the law of diminishing marginal utility. The document also discusses consumer equilibrium when prices are zero and when prices are not zero, as well as the concepts of consumer surplus, demand curves, and indifference curve analysis of ordinal utility.
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.
These slides include the different concepts of cardinal utility analysis and briefly show the assumptions, TU and MU, Law of diminishing utility analysis, and the law of equi-marginal utility, and finally, includes the limitations of cardinal utility analysis.
Utility theory proposes that consumers aim to maximize their total utility, or satisfaction, given budget constraints. There are two main approaches to measuring utility - cardinal and ordinal. The cardinal approach assumes utility can be quantitatively measured, while the ordinal approach only requires consumers can rank their preferences. Consumer equilibrium is reached when the marginal utility per dollar spent is equal across all goods purchased. Prices reflect marginal utility rather than total utility, explaining why essential goods like water are cheap despite high total utility, while luxury goods like diamonds are expensive due to low availability increasing marginal utility. Utility theory provides a framework for understanding consumer choice.
This document discusses oligopoly market structures. Key points include:
- Oligopoly is characterized by a market with few firms that dominate the industry. The firms may produce homogeneous or differentiated products.
- Duopoly is a specific type of oligopoly with only two dominant firms. The firms interact strategically and affect each other's output and pricing decisions.
- Oligopolies can be collusive, where firms formally or informally agree to reduce competition, or non-collusive where firms make independent output and pricing decisions.
- Cournot's duopoly model assumes two firms with identical costs that make output decisions assuming the other firm's output stays constant. The firms eventually reach a Nash equilibrium where
Theory of
Consumer
Behavior
Concept of utility, Cardinal utility, Law of diminishing marginal utility, Law of
Equi-marginal utility, Indifference curve analysis, Marginal rate of substitution,
Budget line, Consumer' equilibrium, Applications of indifference curves.
The document discusses several concepts related to sunk costs and rational decision making. It provides examples of how sunk costs can lead to irrational decisions through the sunk cost fallacy. Specifically, it discusses two hypothetical examples given by Richard Thaler where people decide to continue with plans or purchases even when it is no longer rational due to having already incurred some initial cost. The document also proposes models for incorporating sunk costs and transaction utility into rational decision making frameworks to better explain when the sunk cost fallacy occurs.
The document defines key economic concepts such as scarcity, opportunity cost, production possibility curve, and types of economies. It then discusses consumer theory including utility and diminishing marginal utility. Specifically:
1) Economics studies how individuals and societies make choices given scarce resources and unlimited wants. Opportunity cost is the next best choice given up when making a decision.
2) A production possibility curve illustrates the tradeoffs between two goods based on available resources. Shifting the curve shows how changes like technology affect what can be produced.
3) Economies differ in how decisions are made - socialist, capitalist, and mixed economies allocate resources in different ways. Consumer theory analyzes how utility and marginal utility influence consumption choices.
Utility refers to the satisfaction or benefit derived from consuming a good. The law of diminishing marginal utility states that as consumption of a good increases, the marginal utility of each additional unit decreases. The law of equi-marginal utility extends this to consumption of multiple goods, stating that a consumer will allocate their budget in a way that equalizes the marginal utility across goods. This occurs when a consumer spends their money in a way that maximizes total utility subject to their budget constraint.
The document discusses consumer behavior theory and the concept of indifference curves. It introduces three approaches to analyzing consumer behavior: Marshallian, cardinal utility, and ordinal utility. It then defines utility, explores its features and concepts like total, marginal, and diminishing utility. The document also explains indifference curves and their properties, including convexity and non-intersection. It discusses the budget line and how consumers reach equilibrium when maximizing satisfaction given prices and income.
it describes the bony anatomy including the femoral head , acetabulum, labrum . also discusses the capsule , ligaments . muscle that act on the hip joint and the range of motion are outlined. factors affecting hip joint stability and weight transmission through the joint are summarized.
How to Add Chatter in the odoo 17 ERP ModuleCeline George
In Odoo, the chatter is like a chat tool that helps you work together on records. You can leave notes and track things, making it easier to talk with your team and partners. Inside chatter, all communication history, activity, and changes will be displayed.
How to Manage Your Lost Opportunities in Odoo 17 CRMCeline George
Odoo 17 CRM allows us to track why we lose sales opportunities with "Lost Reasons." This helps analyze our sales process and identify areas for improvement. Here's how to configure lost reasons in Odoo 17 CRM
Walmart Business+ and Spark Good for Nonprofits.pdfTechSoup
"Learn about all the ways Walmart supports nonprofit organizations.
You will hear from Liz Willett, the Head of Nonprofits, and hear about what Walmart is doing to help nonprofits, including Walmart Business and Spark Good. Walmart Business+ is a new offer for nonprofits that offers discounts and also streamlines nonprofits order and expense tracking, saving time and money.
The webinar may also give some examples on how nonprofits can best leverage Walmart Business+.
The event will cover the following::
Walmart Business + (https://business.walmart.com/plus) is a new shopping experience for nonprofits, schools, and local business customers that connects an exclusive online shopping experience to stores. Benefits include free delivery and shipping, a 'Spend Analytics” feature, special discounts, deals and tax-exempt shopping.
Special TechSoup offer for a free 180 days membership, and up to $150 in discounts on eligible orders.
Spark Good (walmart.com/sparkgood) is a charitable platform that enables nonprofits to receive donations directly from customers and associates.
Answers about how you can do more with Walmart!"
How to Fix the Import Error in the Odoo 17Celine George
An import error occurs when a program fails to import a module or library, disrupting its execution. In languages like Python, this issue arises when the specified module cannot be found or accessed, hindering the program's functionality. Resolving import errors is crucial for maintaining smooth software operation and uninterrupted development processes.
Strategies for Effective Upskilling is a presentation by Chinwendu Peace in a Your Skill Boost Masterclass organisation by the Excellence Foundation for South Sudan on 08th and 09th June 2024 from 1 PM to 3 PM on each day.
LAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UPRAHUL
This Dissertation explores the particular circumstances of Mirzapur, a region located in the
core of India. Mirzapur, with its varied terrains and abundant biodiversity, offers an optimal
environment for investigating the changes in vegetation cover dynamics. Our study utilizes
advanced technologies such as GIS (Geographic Information Systems) and Remote sensing to
analyze the transformations that have taken place over the course of a decade.
The complex relationship between human activities and the environment has been the focus
of extensive research and worry. As the global community grapples with swift urbanization,
population expansion, and economic progress, the effects on natural ecosystems are becoming
more evident. A crucial element of this impact is the alteration of vegetation cover, which plays a
significant role in maintaining the ecological equilibrium of our planet.Land serves as the foundation for all human activities and provides the necessary materials for
these activities. As the most crucial natural resource, its utilization by humans results in different
'Land uses,' which are determined by both human activities and the physical characteristics of the
land.
The utilization of land is impacted by human needs and environmental factors. In countries
like India, rapid population growth and the emphasis on extensive resource exploitation can lead
to significant land degradation, adversely affecting the region's land cover.
Therefore, human intervention has significantly influenced land use patterns over many
centuries, evolving its structure over time and space. In the present era, these changes have
accelerated due to factors such as agriculture and urbanization. Information regarding land use and
cover is essential for various planning and management tasks related to the Earth's surface,
providing crucial environmental data for scientific, resource management, policy purposes, and
diverse human activities.
Accurate understanding of land use and cover is imperative for the development planning
of any area. Consequently, a wide range of professionals, including earth system scientists, land
and water managers, and urban planners, are interested in obtaining data on land use and cover
changes, conversion trends, and other related patterns. The spatial dimensions of land use and
cover support policymakers and scientists in making well-informed decisions, as alterations in
these patterns indicate shifts in economic and social conditions. Monitoring such changes with the
help of Advanced technologies like Remote Sensing and Geographic Information Systems is
crucial for coordinated efforts across different administrative levels. Advanced technologies like
Remote Sensing and Geographic Information Systems
9
Changes in vegetation cover refer to variations in the distribution, composition, and overall
structure of plant communities across different temporal and spatial scales. These changes can
occur natural.
6. Antoine Augustin Cournot
Theory of the Firm
• Cournot pioneered the modern price theory for industries
consisting of profit-maximizing firms.
– This is basically the theory taught today in introductory
microeconomics courses
7. Antoine Augustin Cournot
Mathematical Methods
• He introduced differential calculus and the associated
mathematics of maximization into economic analysis.
• These eventually became the indispensable tools of economic
analysis.
8. Antoine Augustin Cournot
Demand
• Cournot introduced the demand function…
– This is a mathematical function, F(p), that represents the idea that
the quantity demanded depends on the price
• …and the familiar demand curve.
9. Antoine Augustin Cournot
Monopoly
• Cournot derived the rule that a profit-maximizing monopolist
would follow in deciding what price to charge.
– This one-good-at-a-time approach is called partial equilibrium
analysis.
• The monopoly pricing rule is the familiar condition that the
price must be such that Marginal Revenue = Marginal Cost.
10. Profit Maximization by a Monopoly
Antoine Augustin Cournot
Quantity
0
Costs and
Revenue
Demand
Marginal
revenue
Price
Monopoly
quantity
Marginal
cost
Competitive
quantity
11. Antoine Augustin Cournot
Monopoly and Costs
• Cournot showed that an increase in production cost (more
precisely, the cost of producing an additional unit, the marginal
cost) would raise the price charged by the monopolist
• and that the price increase could be smaller than or greater
than the increase in cost.
12. Profit Maximization by a Monopoly and Cost Increase
Antoine Augustin Cournot
Quantity
0
Costs and
Revenue
Demand
Marginal
revenue
Price
Monopoly
quantity
Marginal
cost
Competitive
quantity
13. Antoine Augustin Cournot
Monopoly and Taxes
• Lump-sum taxes (that is, taxes that are not dependent on the
monopolist’s decisions) do not affect the monopolist’s
decisions.
– This may sound simpler than it really is!
• Cournot showed that an excise tax (on sellers) and a sales tax
(on buyers) are equivalent.
• These are in turn equivalent to an increase in cost or a
decrease in demand.
14. Profit Maximization by a Monopoly
Antoine Augustin Cournot
Quantity
0
Costs and
Revenue
Demand
Marginal
revenue
Price
Monopoly
quantity
Marginal
cost
Competitive
quantity
15. The Duopoly Problem
• Two firms sell the same product.
• If they together produce a high output, the price of the product will be
low; if they together produce a low output, the price will be high.
• Each firm independently decides what amount to produce.
– That is, no firm knows the other firm’s output decision before making its own.
• So, what reasoning would each firm use to decide what output to
produce?
• And, how will the duopoly outcome differ from the monopoly outcome?
Antoine Augustin Cournot
16. Profit Maximizing Duopolists
Antoine Augustin Cournot
Quantity
0
Costs and
Revenue
Demand1
Marginal
revenue
Price
Monopoly
quantity
Marginal
cost
There are two firms: A and B. This
picture shows Firm A.
If Firm B produces nothing, Firm A’s
demand is Demand1. It produces the
monopoly output.
If Firm B begins to produce, Firm A
will respond by producing less.
If Firm B produces even more, Firm
A will produce even less.
The bigger is Firm B’s output, the
smaller is Firm A’s production.
17. Duopoly
Antoine Augustin Cournot
Firm A’s production
Firm B’s production
Firm A’s reaction curve
Firm B’s reaction curve
Firm B’s
monopoly
output
Firm B’s
duopoly
output
18. Duopoly
• Cournot’s solution to this duopoly problem is the same as the
solution now called Nash Equilibrium in modern game theory.
– Keep in mind that Cournot wrote in 1838.
Antoine Augustin Cournot
19. Antoine Augustin Cournot
Duopoly and Monopoly
• Cournot showed that the output will be higher and the price
will be lower in duopoly than in monopoly.
20. Antoine Augustin Cournot
Cartel Formation
• The total profit of the two firms in a duopoly will be lower than profit of
the one firm in a monopoly.
– Why?
• Nevertheless, the duopolists will not be able to coordinate their
decisions to simulate the monopoly outcome.
– Even if they agree to restrict their joint output to the monopoly output, they will
have huge incentives to secretly renege on the agreement.
– This was an early example of the Prisoners’ Dilemma.
21. Antoine Augustin Cournot
Pure Competition
• Cournot derived the familiar profit-maximization condition:
Price = Marginal Cost.
22. Profit Maximization for a Competitive Firm
Antoine Augustin Cournot
Quantity
0
Costs
and
Revenue
MC
ATC
AVC
MC 1
Q1
MC 2
Q2
The firm maximizes
profit by producing
the quantity at which
marginal cost equals
price.
QMAX
P = MR1 = MR2 P = AR = MR
23. Antoine Augustin Cournot
Price Theory Pioneer
• Way back in 1838, Cournot single-handedly created most of
the price theory that economics relies on today.
25. Willingness-to-pay and utility
• Dupuit argued that utility (or, happiness) can be measured by
willingness to pay.
– Marginal utility of money implicitly assumed to be constant.
26. Willingness-to-pay and demand
• Dupuit derived the downward-sloping demand curve from
willingness to pay
• The height of Dupuit’s demand curve equals marginal utility
– So, his demand curve is the marginal utility curve
– Leon Walras criticized Dupuit later for not clarifying the difference
between the demand curve and the marginal utility curve
– Dupuit implicitly assumed the existence of a product with constant
marginal utility
27. Willingness-to-pay and demand
• The area under Dupuit’s demand curve is a measure of total
utility.
• In this way the link between marginal utility (height) and total
utility (area) was clarified
28. Consumer Surplus
• Dupuit defined consumer surplus as the excess of the total
utility from a purchase over the consumer’s payment for the
purchase
• Dupuit showed that increases in price reduce the consumer
surplus
29. Deadweight Loss
• Dupuit defined the deadweight loss of an outcome as the
extent to which total utility in the outcome is less than the
maximum attainable total utility
• The deadweight loss of a tax was graphically described
30. Tax Policy
• Dupuit showed that, to reach a tax target, it is better to have
low taxes on many goods rather than high taxes on a few
goods.
– This is because the deadweight loss of a tax increases very rapidly as
the size of the tax increases.
• Dupuit explained the logic underlying what today is called the
“Laffer Curve”
31. Price Discrimination Boosts Welfare
• For a natural monopoly, price discrimination can reduce
deadweight losses
– Dupuit was an engineer, working for the government and building
public works, such as the water supply, roads, and bridges
– Naturally, he wondered what price should be charged for the public
services and how the benefit to the public could be measured
32. Cost-Benefit Analysis
• Dupuit pioneered cost-benefit approach to the optimum
provision of public goods
• He used no formal optimization; his results were usually
established through numerical examples
• Dupuit’s implicit assumption of constant marginal utility of
money obscures the trade-offs consumers deal with in making
choices.
34. Equimarginal Principle
• Gossen introduced the equimarginal principle—also called
Gossen’s Second Law—of the theory of consumer behavior.
• This is a rule that a consumer can follow to decide how much
of each good to consume.
• The consumer would then do so in a way that maximizes his or
her utility without going over-budget.
35. Equimarginal Principle
• The equimarginal principle says that the consumer must spend
his or her money in such a way that the utility of the last dollar
spent on a good is the same for all goods.
•
𝑀𝑈𝑥
𝑃𝑥
=
𝑀𝑈𝑦
𝑃𝑦
=
𝑀𝑈𝑧
𝑃𝑧
= ⋯
36. Applying the Equimarginal Principle
• Gossen applied the equimarginal principle to a problem in
which an individual figures out how to allocate a limited
amount of time among various activities so as to maximize
utility.
• This exercise served as a precursor for Gary Becker’s extension
of economic analysis to sociological issues in the 1960s.
37. Further Developments
• Gossen had written in German, and in a highly mathematical
manner
• He went unnoticed, until his book was rediscovered by William
Stanley Jevons, who found that many of his own discoveries
were already known to Gossen
• Gossen’s equimarginal principle was further developed by
Jevons and Carl Menger
40. Theory of Resource Allocation
• Thünen pioneered the marginalist theory of the allocation of resources
to production.
• Assume that the prices of goods and of the resources used in
production are given.
• Then, how much of a good will be produced?
• What amounts of the various productive resources will be used in the
production of the produced good?
• These are the questions that Thünen tried to answer.
Thünen
41. Thünen
One good case
• Assume a central marketplace surrounded by agricultural land, all of
equal fertility
• There is one agricultural good, wheat
• Landowners hire workers to produce wheat
– L workers make Q(L) units of wheat
• The cost of transporting wheat to the market is t dollars per mile
– The market price of wheat is P dollars per ton
– Therefore, wheat grown d miles away from the market will earn P – (t × d) dollars
per ton
42. One good case
• Revenue earned = [P – (t × d)] × Q(L)
• Landowners pay each worker the wage w dollars
– Therefore, total wage payment = w × L
• Therefore, the landowner’s rent (or, profit) = [P – (t × d)] × Q(L)
– w × L
• The landowner chooses L to maximize this rent (or, profit)
Thünen
43. Thünen
One good case
• Adam Smith had discussed the idea of profit maximization.
• It was Thünen who:
– expressed the idea as a mathematical problem,
– solved it using differential calculus, and
– derived testable hypotheses from profit maximization
44. One good case
• Thünen defined the marginal product of labor MPL as the increase in
output Q when labor L increases by one worker
• He also assumed diminishing returns
– That is, MPL decreases as L increases
• He then showed that profit-maximizing landowners will choose L to
make
[P – (t × d)] × MPL = w
• This is the key idea of the marginal productivity theory of distribution
Thünen
45. Thünen
Profit Maximization
• How is a firm to decide how much of a resource to use?
• Profit maximization implies that the firm should follow this
rule:
– Marginal Product of a resource = Factor Price of the resource
(measured in units of the produced good).
46. One good case
• When the farm’s distance to the market d is greater, P – (t × d)
is smaller
• As [P – (t × d)] × MPL = w, MPL must be higher when d is
greater
• Diminishing MPL then implies that L must be smaller when d is
greater
• Notice that Thünen has used the idea of profit maximization to
derive a testable hypothesis: farms that are farther away from
the market will have fewer workers
Thünen
47. Thünen
One good case
• Moreover, farms that are farther away from the market will
earn lower rent (or, profit)
• Why?
– They pay more in transport cost t × d and, therefore, earn a lower
transportation-adjusted price P – (t × d) for wheat
48. One good case
• [P – (t × d)] × MPL = w
Thünen
L
MPL
[P-(t × df)] × MPL
[P-(t × dn)] × MPL
A
B
C
w
Quantity of Wheat
Ln
Lf
There are two farms:
near (n) and far (f). The
near farm hires more
workers and earns more
in rent. The near farm
earns ABC in rent,
whereas the far farm
earns only BC.
49. One good case
• Graphically, the greater the distance
between the farm and the central
market/city, the lower the rent
• Note that this theory of differential rent does
not assume that land varies by quality, as
Ricardo did
Thünen
Distance, d
Rent
50. One good case
• Thünen also showed that if
transportation cost t decreases, fields
that are farther off would be brought
into cultivation: another testable
hypothesis
Thünen
Distance, d
Rent
51. Multiple goods case
• What if there are three goods: wheat, corn, and rice?
• The three crops will be cultivated in concentric
circles around the central market/city—another
testable hypothesis.
• This was the birth of location economics or
geographical economics
Thünen
Distance, d
Rent
Wheat
Corn
Rice
Wheat Corn Rice
52. Thünen
Capital Theory
• What is the right time to chop a tree?
• Maximization of land rent income implies that the landowner
should follow this rule:
– Chop the tree when the highest possible Present Value obtainable
from the tree = Salvage Price of Tree.
• Thünen was analyzing actual problems of forestry when he derived this idea.
This an example of the importance of practical problem solving in the
progress of economics