SherryYao2013530299APMICROREVIEWBasicEconomicConcepts(8%-14%)Scarcity,choice,andopportunitycostScarcity:thelimitednatureofsociety'sresourcesEconomics:thestudyofhowsocietymanagesitsscarceresourcesPeoplefacetrade-off(efficiencyorequality)Opportunitycost:whatevermustbegivenuptoobtainsomeitemProductionpossibilitiescurveQTheproductionpossibilitiescurveshowsthecombinationsofoutputthattheeconomycanpossiblyproducegiventheavailablefactorsofproductionandtheavailableproductiontechnologyQTheoppcostofQxequalstheslopeofcurveTheoppcostofQxishigher,thecurveissteeperoppcostisconstant,thePPFisstrictlineQxTechnologyadvance-PPFshiftQxComparativeadvantage,absoluteadvantage,specializationandtradeComparativeadvantage:theabilitytoproduceagoodataloweropportunitycostthananotherproducerAbsoluteadvantage:theabilitytoproduceagoodusingfewerinputsthananotherproducersTradecanbenefiteveryoneinsocietybecauseitallowspeopletospecializeinactivitiesinwhichtheyhaveacomparativeadvantage：EconomicsystemPropertyrightsandtheroleofincentivesPropertyrights:theabilityofanindividualtoownanexercisecontroloverscarceresources(MarketpowerNegativeexternalityIncentive:somethingthatinducesapersontoact(theprospectofapunishmentorareward)MarginalanalysisMarginalchange:asmallincrementaladjustmenttoaplanofactionPeoplemakechoicewhenmarginalbenefit>marginalcostTheNatureandFunctionsofProductMarkets(55%-70%)A.SupplyandDemand(15%-20%)Marketequilibrium>AsituationinwhichthemarketpricehasreachedthelevelatwhichquantitysuppliedequalsquantitydemandedDeterminantsofsupplyIncome:income\,demandofnormalgoods\,demandofinferiorgoodfPricesofrelatedgoods:priceofsubstitute\,demandofanothergood\priceofcomplements\,demandofanothergoodfTastesExpectations:expecthigherincome,demandfNumberofbuyers:buyersf,demandfDeterminantsofdemandInputprice:inputpricef,supply\Technology:advanceintechnology,supplyfExpectations:expectthepriceofgoodsf,supplyfNumberofsellers:numberofsellersf,supplyfPriceandquantitycontrolsDemand^,pricef,quantityfSupplyf,price\,quantityfElasticityDemandCurveInelastic:Pricef,totalrevenuefDemandCurveElastic:Pricef,totalrevenue\NormalGoods&IncomeElasticity:TheQuantityofNormalGoodsmovesthesamedirectionwiththePercentageofIncome對normalgoods的需求量與收入變動同方向運動TheElasticityofNormalGoodsisusuallypositiveInferiorGoods&IncomeElasticityTheQuantityofInferiorGoodsmovestheoppositedirectionwiththePercentageofIncome對inferiorgoods的需求量與授予變動反方向運動TheElasticityofInferiorGoodsisusuallynegativeExy>1,substitute,Exy<1,complementaryConsumersurplus,producersurplus,andallocativeefficiencyConsumersurplus:theamountabuyeriswillingtopayforagoodminustheamountthebuyeractuallypaysforitProducersurplus:theamountasellerispaidforagoodminustheseller'scostofprovidingit歡迎下載

l=-1-irel=-1-ire>Allocativeefficiency:thelastunitprovidesmarginalbenefittoconsumer=themarginalcosttoproducerg)TaxincidenceanddeadweightlossTaxincident:themannerinwhichtheburdenofataxisasharedamongparticipantsinamarketElasticityf,thetaxburden\Deadweightloss:thefallintotalsurplusthatresultsfromamarketdistortionsuchastaxB.歡迎下載B.歡迎下載Theoryofconsumerchoice(5%-10%)TotalutilityandmarginalutilityTotalutility:TheaggregatelevelofsatisfactionorfulfillmentthataconsumerreceivesthroughtheconsumptionofaspecificgoodorserviceMarginalutility:gainfromanincrease,orlossfromadecrease,intheconsumptionofthatgoodorserviceUtilitymaximization:equalizingmarginalutilityperdollar.(MQ/PX=MUY/PY)Incomeandsubstitutioneffects百事可樂熟量比薩餅數量百事可樂熟量比薩餅數量C.ProductionandCosts(10%-15%)a)Productionfunctions。品“ L,UniUofIjlMir.LProductionfunction:therelationshipbetweenthequantityofinputsusedtomakeagoodandthequantityofoutputofthatgoodThequantityoftheinputf,theproductionfunctiongetsflatterMarginalproductanddiminishingreturnsMarginalproduct:theincreaseintheamountofoutputfromanadditionalunitoflaborDiminishingreturn:thepropertywherebythemarginalproductofaninputdeclinesasthequantityoftheinputincreasesShort-runcosts歡迎下載>FixedcostintheshortrunLong-runcostsandeconomiesofscaleEconomiesofscale:thepropertywherebylong-runaveragetotalcost\asthequantityofoutputfDiseconomiesofscale:thepropertywherebylong-runaveragetotalcostfasthequantityofoutputfConstantreturnstoscale:thepropertywherebylong-runaveragetotalcoststaysthesameasthequantityofoutputchangesCostminimizinginputcombinationandproductiveefficiencyEfficientscale:thequantityofoutputthatminimizedaveragetotalcostProducesgoodsinthequantitywhereMCintersectwithATC(minATC)D.Firmbehaviorandmarketstructure(25%-35%)ProfitShort-runprofit:WhenATC<(MR=MC)Long-runprofit(Normalprofit)=zeroEconomicprofit:totalrevenue-totalcost(explicit+implicit)Accountingprofit:totalrevenue-totalexplicitcostProfitMaximization:producewhereMC=MRPerfectcompetitionCharacteristics:PricetakesFreeentry&exitManysellers&buyersFullysubstitutablePerfectlyelastic(demandcurveHomogenousLongrun:P=ATCMC=MR=PProfitmaximization:MC=MR=P=ATCShortrunsupplyandshutdowndecision:1.P<ATC:EconomicLoss.AVC<P<ATC:Operateinthe歡迎下載

Shortrunbutexitinthelongrun.P=AVC/P<AVC:shutdowninshortrunMonopolyCharacteristics:singlesellerHighbarrierstoentryNosubstitutes(havekeyresources)InelasticPricemakerEconomicsprofit(P>MC=MR)Profitmaximization:producequantityinQ*,priceinP*Naturalmonopoly:asinglefirmcanproduceoutputatalowercostthancanalargernumberofproducers(MChorizontal)Inefficiencyofmonopoly:Price>MR=MC-deadweightlossPricediscrimination:thebusinesspracticeofsellingthesamegoodatdifferentpricestodifferentcustomers(reduceconsumersurplus-profit)Socialoptimal:MC=DMonopolycompetition>Characteristics:monopoly<numberofsellers<competitivemarket歡迎下載

ImperfectsubstitutesImperfectinelasticityHeterogeneousproductsPricemakerLong-runprofit=zero歡迎下載歡迎下載1.MR=MC1.MR=MC2.DecideP*andQ*e)>Long-runmonopolycompetitionP*=ATCEcoProfits=0P*>minATCP*>MCe)>Long-runmonopolycompetitionP*=ATCEcoProfits=0P*>minATCP*>MCP*>MR>Excesscapacity:thequantityproduced<efficientscale-excesscapacitytheprice>marginalcost-markupTheproduct-varietyexternality:positiveexternalityThebusiness-stealingexternality:negativeexternalityOligopolyCharacteristics:fewsellerscontrolthewholemarketFewersubstitutesPricemakerInterdependenceinpricingInefficiencyEconomicprofitP>MC.P>MRCollusion:anagreementamongfirmsinamarketaboutquantitiestoproduceorpricestochargeCartel:agroupoffirmsactinginunisonGametheory:thestudyofhowpeoplebehaveinstrategicsituationNashequilibrium:reachedwhenthechoicesofallfirmsaresuchthatthereisnootherchoicethatmakesanyfirmbetteroff(increasesprofitsordecreaseloss)Dominantstrategy:astrategythatisbestforaplayerinagameregardlessofthestrategieschosenbyotherplayersTheoutputeffect:P>MC,outputf,profitfThepriceeffect:Qf,PLprofit[Outputeffect>priceeffectfincreaseproductionFactorMarkets(10%-18%)Derivedfactordemand>DemandforafactorofproductionMarginalrevenueproduct>TheadditionunitofproductbringsadditionrevenueHiringdecisionsinthemarketsforlaborandcapital>Acompetitive,profit-maximizingfirmhiresworkersuptothepointwheretheVMPL=wageMarketdistributionofincome>Wage=VMPL=PricexMPLLabordemandshiftPf,VMPLf,labordemandfAdvanceintechnologyThesupplyofotherfactorsLaborsupplyshiftChangesintastesChangesinalternativeopportunitiesimmigrationMarketFailureandtheRoleofGovernment(12%-18%)ExternalitiesPositiveexternality:socialbenefit>privatebenefitNegativeexternality:socialcost>privatecostCorrectivetax:ataxdesignedtoinduceprivatedecisionmakerstotakeaccountofthesocialcoststhatarisefromanegativeexternalitySubsidiesPublicgoodsPrivategoods:excludable&rivalinconsumption(clothing/congestedtollroads)Publicgoods:notexcludable¬rivalinconsumption(nationaldefense/uncongestednontollroads)Commonresources:notexcludable&rivalinconsumption(environment/congestednontollroads)Clubgoods:excludable&no