Lecture 1 microeconomics

Decision to Shut-Down, Enter or Exit If a firm shuts down, it will earn no revenue and will have only fixed costs A firm will shut down if sales revenue less than its variable costs of production: For an accountant, the cost of an activity is the out-of-pocket expenses, all of the money paid to undertake the activity.

It may or may not contain all the concepts or calculations to be tested on the exam. Here is a scatter graph of the correlation between attendance and grades: Elasticity can be quantified as the ratio of the change in one variable to the change in another variable, when the later variable has a causal influence on the former.

If you do use a cell phone to record lectures, lay them on your desk and do not handle them during class. In the economy, goods and services are produced, exchanged, and consumed. Rather than being concerned with the production of a single good or service, say, vacuum cleaners, macroeconomics looks at the total production of all goods and services including vacuum cleaners, coffee makers, and frozen pizza.

Scarcity Economics is the study of the allocation of scarce resources among competing and insatiable needs so as to maximize welfare. Lyn January 18, at 4: I have revised the slides for Lecture 3 where we talked about underproduction. This price results in a stable economic equilibrium.

However, an alternative way to develop microeconomic theory is by taking consumer choice as the primitive.

MIT 101SC Principles of Microeconomics, Fall 2010

We will discuss how grades may be adjusted in class on Monday. One example is the assumption of perfect competition.

Principles of Microeconomics

As such, these questions will constitute learning objectives of this course. Care to comment on the pricing. Opportunity cost is the value of the next best alternative.

Limitation of Economic Theory When examining the generality of an economic theory, one should realize any theory or assumption has a boundary, limitation, and applicable range of economic theory.

In any cases, these sample exams may or may not contain all the concepts or calculations to be tested on the exam. Therefore, it is important to keep in mind that every theory is not universal, cannot explain everything, but has its limitation and boundary of suitability.

Most of the presentations and slideshows on PowerShow. It is at this point that economists make The technical assumption that preferences are locally non-satiated.

Fall 2018 Courses

The subject matter of economics can be approached from two levels of analysis: This can include manufacturingstoring, shippingand packaging. The first exam will have three essay questions on it over the material covered.

Opportunity cost The economic idea of opportunity cost is closely related to the idea of time constraints. These notes must be turned in with the exam.

Econ 101A, Microeconomic Theory

Thomas Lee May 2, at 8: A rule of a game designed for self-interested individuals is likely also suitable for altruists, but the reverse is likely not true. Planned to prepare the Hungarian-language translation?.

MITOCW | Lecture 1 The following content is provided under a Creative Commons license. Your support will help MIT OpenCourseWare continue to offer high quality educational resources for free.

To make a donation or view additional materials from hundreds of MIT courses, visit MIT OpenCourseWare at mobile-concrete-batching-plant.com microeconomics of consumer theory and will later turn to a consideration of firms.

The two theoretical tools of consumer theory are utility functions and budget constraints. Out good 1 in combination with 9 units of good 2 and having 9 units of good 1 in. The Cartoon Introduction to Economics, Volume 1: Microeconomics June 14, Ask your local bookstore for my new book (co-authored with Grady Klein), or you can order it for just $12 from mobile-concrete-batching-plant.com or B&N.

Microeconomics

Course Outline Microeconomic Theory I Lecture 1: Production Theory and Pro t Maximization. I Lecture 2: Cost Minimization and Aggregation. I Lecture 3: Pure Exchange Economy and Walrasian Equilibrium. I Lecture 4: Existence of Walrasian Equilibrium and Welfare Theorems.

I Lecture 5: Walrasian Equilibrium with Production and Externalities. Leonardo Felli (LSE) EC Advanced Microeconomics. LECTURES AND EXERCISES Typeset by AMS-TEX 1.

2. ECONOMICS –MICROECONOMIC THEORY 3 Lecture 1: Introduction Recallthecircularflowofincome: Figure The Circular Flow of Income Basic microeconomics develops theories of the product and factor markets.

Econ 212: Principles of Microeconomics, Summer 2017 (Lecture 1)

A. Before watching the lecture video, read the course textbook for an introduction to the material covered in this session: [R&T] Chapter 1, "Economics: The Study of Choice." [ Perloff ] Chapter 1, "Introduction.".

Lecture 1 microeconomics
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Economics 14 Class Notes