Week 4

This week we will discuss General Equilibrium, a way of studying multiple (or all) markets at once; and look at the foundation of the Supply curve — how producers respond to the price of a good and to input prices.

Quiz 5

  • General equilibrium in two markets
  • General equilibrium in pure exchange/the Edgeworth box
    • Graphing it
    • Finding equilibrium
    • Efficiency theorems, concepts, terms

Quiz 6

  • Production — concepts, returns to scale, graphing isoquants, etc.
  • Cost minimization and deriving the cost function

Next week's quiz and midterm (anticipated)

  • Short-run firm behavior
  • Monopoly behavior
  • Perfectly competitive firm behavior
  • Welfare measured in $ — graphing, calculating, in several applications:
    • Price controls
    • Per-unit taxes
    • Perfect competition
    • Monopoly
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