Slide 1The assumption of maximizing behavior lies at the heart of economic analysis. Firms are assumed to maximize economic profit. Economic profit is the difference between…
Slide 1X. The economics of superstars Slide 2 Motivation Some workers seem to earn very large wages: sports, movies, top managers, etc These rents seem associated with their…
Slide 1 Slide 2 When economists examine firms over time they must define the Short Run and Long Run Short Run –Only some inputs (e.g. labor) can be adjusted –Not enough…
Slide 1Firms and Competitive Markets Slide 2 Competitive Market Properties – Many buyers and sellers – Trading identical products – Each buyer and seller a price taker…
Slide 1Andrei Shatalov Mr. Gill 2B 18 January 2010 Slide 2 The MR=MC point is located on a graph where the marginal revenue curve intersects with the marginal cost curve.…
Slide 1Globalizing food markets: Food Security and Environmental Effects in Latin America Insa Niemeyer CEIGRAM, FMB Water Observatory, May 12th 2011 Slide 2 Contents 1.Statement…
1. 2. Chapter Outline 8 Short-Run Costs and Output Decisions Costs in the Short Run Fixed Costs Variable Costs Total Costs Short-Run Costs:A Review Output Decisions:Revenues,…
1.Perfect Competition: Short Run and Long Run2. Features of a Perfectly Competitive Market There are many firms. The product is standardized, or homogeneous. Firms can freely…
1. SUPPLY 2. DRAM INDUSTRY, 1996-98 Prices falling sharply: Fujitsu closed Durham, UK, factory but continued production at Gresham, OR Texas Instruments sold Richardson TX,…