tailieunhanh - Lecture Managerial economics (Ninth edition): Chapter 16– Thomas, Maurice

Chapter 16 - Government regulation of business. In this chapter we showed you why economists and policymakers believe well-functioning competitive markets can lead to economically efficient levels of production and consumption in equilibrium. Society’s well-being, as measured by the social surplus generated through trade between buyers and sellers, is maximized when markets operate in an economically efficient manner. | Chapter 16 Government Regulation of Business Market Competition & Social Economic Efficiency Social economic efficiency Exists when the goods & services that society desires are produced & consumed with no waste from inefficiency Two efficiency conditions must be met Productive efficiency Allocative efficiency 16- Productive Efficiency Exists when suppliers produce goods & services at the lowest possible total cost to society Occurs when firms operate along their expansion paths in both the short-run & long-run 16- Allocative Efficiency Requires businesses to supply optimal amounts of all goods & services demanded by society And these units must be rationed to individuals who place the highest value on consuming them Optimal level of output is reached when the MB of another unit to consumers just equals the MC to society of producing another unit Where P = MC (marginal-cost-pricing) 16- Social Economic Efficiency Achieved by markets in perfectly competitive equilibrium At | Chapter 16 Government Regulation of Business Market Competition & Social Economic Efficiency Social economic efficiency Exists when the goods & services that society desires are produced & consumed with no waste from inefficiency Two efficiency conditions must be met Productive efficiency Allocative efficiency 16- Productive Efficiency Exists when suppliers produce goods & services at the lowest possible total cost to society Occurs when firms operate along their expansion paths in both the short-run & long-run 16- Allocative Efficiency Requires businesses to supply optimal amounts of all goods & services demanded by society And these units must be rationed to individuals who place the highest value on consuming them Optimal level of output is reached when the MB of another unit to consumers just equals the MC to society of producing another unit Where P = MC (marginal-cost-pricing) 16- Social Economic Efficiency Achieved by markets in perfectly competitive equilibrium At the intersection of demand & supply, conditions for productive & allocative efficiency are met At the market-clearing price, buyers & sellers engage in voluntary exchange that maximizes social surplus 16- Efficiency in Perfect Competition (Figure ) 16- Market Failure & the Case for Government Intervention Competitive markets can achieve social economic efficiency without government regulation But, not all markets are competitive, and even competitive markets can sometimes fail to achieve maximum social surplus Market failure When a market fails to achieve social economic efficiency and, consequently, fails to maximize social surplus 16- Market Failure & the Case for Government Intervention Six forms of market failure can undermine economic efficiency: Monopoly power Natural monopoly Negative (& positive) externalities Common property resources Public goods Information problems 16- Market Failure & the Case for Government Intervention Absent market failure, no .

• Kinh tế học
• Managerial economics
• Lecture Managerial economics
• Strategic decision making
• Microeconomic theory
• Government regulation
• Social economic efficiency
• Market interactions
• Fundamentals of managerial economics
• Marginal analysis
• Marginal benefit
• Economic principles
• Kinh tế học quản lý
• Price discrimination
• Monopolistic competition
• Oligopoly games
• Traditional oligopoly models
• Capital market
• Labour market
• Economic equations
• Economic applications
• Economic applications of derivatives
• Economic application
• Multi variable functions
• Constrained optimization
• Scatter diagram
• Forms of money
• Monetary policy
• Perfect competition
• Demand function
• Supply function
• Quantitative demand analysis
• Theory of individual behavior
• Demand estimation
• Production function
• Costs of production
• Organizing production