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Lecture Microeconomics: Theory and applications (12/e): Chapter 19 - Browning, Zupan
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Lecture Microeconomics: Theory and applications (12/e): Chapter 19 - Browning, Zupan
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Chapter 19 - General equilibrium analysis and economic efficiency. In this chapter students will be able to: Delineate the difference between partial and general equilibrium analysis, explain the concept of economic efficiency, outline the three conditions necessary for the attainment of economic efficiency,. | MICROECONOMICS: Theory & Applications By Edgar K. Browning & Mark A. Zupan John Wiley & Sons, Inc. 12th Edition, Copyright 2015 Chapter 19: General Equilibrium Analysis and Economic Efficiency Prepared by Dr. Della Lee Sue, Marist College Learning Objectives Delineate the difference between partial and general equilibrium analysis. Explain the concept of economic efficiency. Outline the three conditions necessary for the attainment of economic efficiency. Examine efficiency in production and what this implies about input usage across different industries. (continued) Learning Objectives (continued) Show how efficiency in output is related to the production possibility frontier. Demonstrate how perfect competition satisfies all three conditions for economic efficiency. Spell out the reasons why economic efficiency may not be achieved. 19.1 PARTIAL AND GENERAL EQUILIBRIUM ANALYSIS COMPARED Delineate the difference between partial and general equilibrium analysis. Partial and | MICROECONOMICS: Theory & Applications By Edgar K. Browning & Mark A. Zupan John Wiley & Sons, Inc. 12th Edition, Copyright 2015 Chapter 19: General Equilibrium Analysis and Economic Efficiency Prepared by Dr. Della Lee Sue, Marist College Learning Objectives Delineate the difference between partial and general equilibrium analysis. Explain the concept of economic efficiency. Outline the three conditions necessary for the attainment of economic efficiency. Examine efficiency in production and what this implies about input usage across different industries. (continued) Learning Objectives (continued) Show how efficiency in output is related to the production possibility frontier. Demonstrate how perfect competition satisfies all three conditions for economic efficiency. Spell out the reasons why economic efficiency may not be achieved. 19.1 PARTIAL AND GENERAL EQUILIBRIUM ANALYSIS COMPARED Delineate the difference between partial and general equilibrium analysis. Partial and General Equilibrium Analysis Compared General equilibrium analysis – the study of how equilibrium is determined in all markets simultaneously Partial equilibrium analysis – the study of the determination of an equilibrium price and quantity in a given product or input market viewed as self-contained and independent of other markets assumes that some things that conceivably could, but do not, change (“other things equal”) The Mutual Interdependence of Markets Illustrated Spillover effect – a change in equilibrium in one market that affect other markets Feedback effect – a change in equilibrium in a market that is caused by events in other markets that, in turn, are the result of an initial change in equilibrium in the market under consideration Figure 19.1 - Interdependence Between Markets: Butter and Margarine When Should General Equilibrium Analysis Be Used? Guideline: Partial analysis is usually accurate in cases involving a change in conditions primarily affecting one .
TÀI LIỆU LIÊN QUAN
Lecture Microeconomics: Theory and applications (12th edition): Chapter 1 - Browning, Zupan
Lecture Microeconomics: Theory and applications (12th edition): Chapter 2 - Browning, Zupan
Lecture Microeconomics: Theory and applications (12th edition): Chapter 3 - Browning, Zupan
Lecture Microeconomics: Theory and applications (12th edition): Chapter 4 - Browning, Zupan
Lecture Microeconomics: Theory and applications (12th edition): Chapter 5 - Browning, Zupan
Lecture Microeconomics: Theory and applications (12th edition): Chapter 6 - Browning, Zupan
Lecture Microeconomics: Theory and applications (12th edition): Chapter 7 - Browning, Zupan
Lecture Microeconomics: Theory and applications (12th edition): Chapter 8 - Browning, Zupan
Lecture Microeconomics: Theory and applications (12th edition): Chapter 9 - Browning, Zupan
Lecture Microeconomics: Theory and applications (12th edition): Chapter 10 - Browning, Zupan
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