tailieunhanh - Lecture Principles of economics - Chapter 6: Perfectly competitive supply

This chapter focuses on how individual sellers operate in perfectly competitive environment. This chapter focuses on perfect competition in the short run, in this chapter students should be able to: Explain how opportunity cost is related to the supply curve, discuss the relationship between the supply curve for an individual firm and the market supply curve for an industry, determine a perfectly competitive firm's profit-maximizing output level and profit in the short run,. | Perfectly Competitive Supply Chapter 6 McGraw-Hill/Irwin Copyright © 2015 by McGraw-Hill Education (Asia). All rights reserved. 1 Learning Objectives Explain how opportunity cost is related to the supply curve Discuss the relationship between the supply curve for an individual firm and the market supply curve for an industry Determine a perfectly competitive firm’s profit-maximizing output level and profit in the short run Connect the determinants of supply with the factors that affect individual firms’ costs and apply the theory of supply Define and calculate producer surplus 2 Productivity Changes Over Time Productivity can be measured by looking at the time it takes a worker to produce a good Productivity in manufacturing has increased Assembling a car Productivity in services has grown more slowly Orchestras require the same number of musicians Barbers take just as long to cut hair Manufacturing wages and service wages increase at about the same rate Principle of Opportunity Cost | Perfectly Competitive Supply Chapter 6 McGraw-Hill/Irwin Copyright © 2015 by McGraw-Hill Education (Asia). All rights reserved. 1 Learning Objectives Explain how opportunity cost is related to the supply curve Discuss the relationship between the supply curve for an individual firm and the market supply curve for an industry Determine a perfectly competitive firm’s profit-maximizing output level and profit in the short run Connect the determinants of supply with the factors that affect individual firms’ costs and apply the theory of supply Define and calculate producer surplus 2 Productivity Changes Over Time Productivity can be measured by looking at the time it takes a worker to produce a good Productivity in manufacturing has increased Assembling a car Productivity in services has grown more slowly Orchestras require the same number of musicians Barbers take just as long to cut hair Manufacturing wages and service wages increase at about the same rate Principle of Opportunity Cost 3 Buyers and Sellers Cost-Benefit Principle is behind decision making Buyers: buy one more unit? Only if marginal benefit is at least as great as marginal cost Sellers: sell one more unit? Only if marginal benefit (marginal revenue) is at least as great as marginal cost Opportunity Cost also matters Buyers: hamburger or pizza? Sellers: recycle aluminum or wash dishes? 4 The Importance of Opportunity Cost Harry can divide his time between two activities: Wash dishes for $6 per hour Recycle aluminum cans and earn 2¢ per can Harry only cares about the income How much labor should Harry supply to each activity? Harry should devote an additional hour to recycling as long as he is earning at least $6 per hour 5 Recycling Services Hours per Day Total Number of Aluminum Cans Found 0 0 1 600 2 1,000 3 1,300 4 1,500 5 1,600 Additional Number of Cans Found 600 400 300 200 100 6 Recycling Services Harry earns more than $6 for each of the first two hours Third hour is a tie with washing dishes .

• Kinh tế học
• Principles of economics
• Lecture Principles of economics
• Market imperfections
• The international economy
• Perfectly competitive supply
• Price equals marginal cost
• Ten principles of economics
• People face tradeoffs
• Opportunity cost
• Marginal changes
• Economics of information
• Consumer choice
• Free rider problem
• Market transactions
• Welfare Economics
• Consumer surplus
• Demand curve
• Efficiency of markets
• Nature of an externality
• Market inefficiency
• Negative externalities
• Principles of microeconomics
• Lecture Principles of microeconomics
• Scarce resources
• Scarcity implies choice
• Choice implies cost
• Principles of agricultural economics
• Agricultural economics
• Economics of agricultural production
• Theory of consumer behaviour
• Economics of market demand
• Dynamics in demand analysis
• Analysis of agricultural markets
• Agricultural markets
• Economics of trade
• Costs of taxation
• Deadweight loss
• Laffer curve
• Supply side economics
• Market forces
• Supply and demand
• Market economies
• Competitive Markets
• Thinking like an economist
• Economic models
• Circular flow diagram
• Production possibilities frontier
• The gains from trade
• Production possibilities
• Comparative advantage
• Absolute advantage
• Costs of production
• Total revenue
• Total cost
• Opportunity costs
• Price elasticity of demand
• Price elasticity
• Midpoint method
• Demand curves
• Factors of production
• Demand for labor
• Production function
• Marginal product of labor
• Controls on prices
• Price ceiling
• Price floor
• Market outcomes
• Theory of consumer choice
• Budget constraint
• Indifference curve
• Marginal rate of substitution
• Measuring nation’s income
• Economy’s income
• Gross domestic product
• Components of GDP
• International trade
• Determinants of trade
• Equilibrium without trade
• Production and growth
• Economic growth
• Monetary system
• Functions of money
• Federal reserve
• Central bank
• Open economy macroeconomics
• Economy macroeconomics
• Closed economy
• Open economy
• Public goods
• Common resource
• Types of goods
• Cost benefit analysis
• Aggregate demand
• Aggregate supply
• Short run economic fluctuations
• Economic fluctuations
• Tax system
• Federal Government
• Marginal tax rate
• Budget surplus
• Macroeconomic policy
• Debate over macroeconomic policy
• Stabilize the economy
• Monetary policy