1. Firms in a Competitive Market9 2. Previously • Economists break cost into two components – Explicit costs (can be easily calculated) – Implicit costs (are hard to…
Slide 1 Chapter 8 performance and strategy in competitive market Slide 2 Competitive Market Efficiency Market Failure Role for Government Subsidy and Tax Policy Tax Incidence…
Slide 1 Consumer and Producer Surplus: Effects of Taxation Slide 2 Welfare Economics Welfare economics shows how the allocation of resources affects economic well-being.…