Ch1. Introductory Materials

Ch1.
Introductory Materials
1) scarcity稀缺性: everything has a limit.
2) trade-off有舍有得: people facing trade of when all the resources are limited.
Trade-off： to get more of one thing, we have to give up another thing

3) Efficiency vs. Equity
i. Efficiency: getting the most from scarce resources
• 如何用现有的资源得到最大可能收益
ii. Equity: distributing the economic benefits fairly among the members of society
• 如何分配利益
4) Opportunity cost机会成本: the second best alternative you have to give up in order to gain
a certain thing.
i. Opportunity Cost = 放弃/所得 = 所得一个单位时所放弃的价值总数,只计入所放弃
的最高价值
eg. 假如你有多个追求者为“备胎”，那么你选择了你最喜欢的追求者A，你的机会成
本是第二顺位的B，而不是其他全部“备胎“
ii. opportunity cost不一定是金钱价值
iii. 如果X产品的OC# = Y/X，那么Y产品的OC$ = X/Y = 1/OC#
iv. 如果已知：total amount of resource, unit cost per each unit of cost
OC# = resource spent one unit of X / resource spent one unit of Y
eg. 24 hours per day; 2 hours per lecture; 0.5 hours per game
Youplus Education Inc. 1 内部资料，请勿外传

5) marginal analysis边际效益分析MB和MC: people think about the increment of benefit and
cost to choose the best quantity.

Marginal benefits: benefit from an additional unit of good.
Marginal cost: cost from an additional unit of good.
∆&'
i. MB = ∆(
∆&)
ii. MC = ∆(
通过考虑下一步行为所产生的，新增的收益（marginal benefit）和成本（marginal cost）
来决定是否要做一件事.
Rational People make the marginal analysis to make the decision.

• Marginal Benefit keep falling → Diminishing Marginal Benefit
• Marginal Cost keep raising → Increasing Marginal Cost
Use marginal reasoning in decisions-making: 用MB = MC的公式得出效益最大化的数量。
6) Explain why people respond to incentives: incentive changes marginal benefit and cost of
people, to change peoples’ behavior.

Ch2.Economic Methods
1) Explain why economists use assumptions when building models: makes real world
scenario easier to understand.
a) Verbal Model: 通过简单的话语描述一件事情发生的前因后果。
b) Mathematic Model: 通过公式，代数等因素形成一个能用公式解释简单状况的模
型。
c) Graphic Model: 通过图像对现实时间进行描述。
2) Differentiate positive statement and normative statement:

Scientists – try to explain the world
• Describe
• 确定性，客观性，可验证性
• is, are, can, will

• "government-provided healthcare will increases public expenditures"
Policy advisers: try to improve the situation
• Prescribe
• 不确定性，未被证明，难以证明
• should，maybe, could....
• "government should provide basic healthcare to all citizens"
3) Explain why economists disagree: economic theories are too simple, hard to explain all the
details in real world.

4) Production Possibility Curve (Frontier) 生产有效前沿
One producer, resource with scarcity, two product consuming resources.

• Production possibilities frontier (PPF): 生产边界线
线上是efficient point-A、B
线外是unaffordable-D
线内是inefficient-C
• The opportunity cost = give up / obtain
从A到B：放弃Y output，得到X output
X output的机会成本是Y output
• PPF-2 shapes
弧形Concave to origin: increasing opportunity cost
直线Straight line: constant opportunity cost

Ch 3. Gains from Trade
1) Define absolute advantage and comparative advantage：
Absolute Advantage：绝对优势，单价成本低或者总产量较大。
Comparative Advantage：比较优势，机会成本（give up/gain）较低。
2) Explain the relationship between absolute advantage, comparative advantage,

opportunity cost, productivity, and gains from trade:
trading partners define the term of trade based on their comparative advantage, by doing so,
both side in the trade will be better off.
3) Calculate the opportunity cost and relate the opportunity cost to the slope of PPF.
give up/gain = opportunity cost. 千万注意题中给的数字是表示商品的个数还是商品生产的
单位成本。两种不同条件算法是颠倒的。
4) Use PPF model to explain the gains from trade.
• 线内：affordable but inefficiency

• 线上：efficient, facing trade off
• 线外：unaffordable
通过trade，双方都可以获得在线外的消费组合，这在没有trade（autarky）时是不可能达
到的。
例题1：
已知条件：
单位成本：
Farmer生产肉需要60min，土豆需要15min
Rancher生产肉需要20min，土豆需要10min
最大产量：
Farmer：8oz肉，32oz土豆
Rancher：24oz肉，48oz土豆
也可以通过产品生产的unit cost或者是最大产量来对双方生产两个产品的opportunity cost
进行计算，但是一定记住两种情况下，带入的数字是颠倒的。
同一个producer生产两个产品的opportunity cost是互为倒数的。

两个producer在不进行贸易时叫autarky，这时两个生产者会默认将自己的资源平方到两个
产品上，获得的产品数量如图：
Farmer Rancher
Meat Potatoes Meat Potatoes
4 OZ 16 OZ 12 OZ 24 OZ
rancher和farmer通过对两个产品opportunity cost的计算，决定了comparative advantage
（C.A）的产品，对该产品specialize作为出口产品，对另一个产品进行进口。
• Farmer have C.A in producing potatoes.

• Rancher have C.A in producing meats.
在这道例题中
• Farmer需要Specialization，将所有时间用来生产土豆，并且出口土豆
• Rancher在本题没有完全的Specialization，进行合理的配比调控，将75%的总资源生产
肉，降低土豆的生产时间。
注意：这是属于一种partially specialize，题目中会告知你具体的比重是多少。

贸易条款（题目给出）：
• TOT（Term of Trade）：贸易价格，一般不会低于有C.A的一方的成本，也不会高于劣
势方的成本。否则本次贸易不是平等贸易。
• Amount of Trade：交易量也由题目给出
• 但出口方的量必须大于之前进口方在平方资源时所得产量；反之作为进口方，我一定
会进口大于之前自身产量的数量。
• 贸易后的消费数量（amount of consumption）会大于autarky的产量，差值为“gain
from trade”。
例题2：
题目直接给出双方的PPT，自己通过对模型的理解得出所需的数字，进行计算
• OCL Smoothies (Opportunity Cost for Liz to produce smoothies) = 5 salads

• OCL Salads = 1/5 Smoothies
• OCJ Smoothies = 1 Salad
• OCJ Salads = 1 Smoothies

5) Apply the principle of comparative advantage to real situations like international trade
and division of labor.
联系现实生活当中，贸易国家双方因为劳动力的差异形成的贸易合作。
例如：
中国，大量劳动力，缺乏生产资本；美国，大量生产资本，缺乏劳动力。
中国生产高精尖的商品机会成本过高 → 从美国进口
美国生产需要大量劳动力的产品机会成本过高 → 从中国进口
Both sides get better off

Supply and Demand (Ch. 4)
1) Explain the law of demand and the law of supply.
𝐐𝐝(𝐏) = 𝛂 − 𝛃 ∗ 𝐏
Law of demand: negative relationship of price and quantity demanded (Qd);
𝐐𝐬(𝐏) = 𝛃 ∗ 𝐏 − 𝛂
Law of supply: positive relationship of price and quantity supplied (Qs)
公式转化
𝛂 𝟏
𝐐𝐝(𝐏) = 𝛂 − 𝛃 ∗ 𝐏 转换inverse demand function. 𝐏(𝐐) = 𝛃 − 𝛃 ∗ 𝐐
𝛂 𝟏
𝐐𝐬(𝐏) = 𝛃 ∗ 𝐏 − 𝛂 转化inverse supply function. 𝐏(𝐐) = 𝛃 + 𝛃 ∗ 𝐐

2) Differentiate the change in demand and the change in quantity demanded, the change in
supply and the change in quantity supplied.
Price change can only cause to change in quantity supplied and quantity demanded(价格改
变不影响整根线，只是沿线移动move along the curve).
3) List and explain the factors that shift the demand curves.
i. Income：Normal+, Inferior-
ii. Price of Related Goods

a) Complement-
b) Substitute+
iii. Tastes+
iv. Expectation+
v. Number of Buyers+
横向比较：在商品保持同等价位（Price）时，我愿意去购买更多的商品
纵向比较：在同个消费量（Qd）的情况下，我购买商品所愿意支付的预算得到了提升/降

4) List and explain the factors that shift the supply curves.
i. Technology+
ii. Price of Related Goods
iii. Compliment+
iv. Substitute-
v. Cost of Input-
vi. Future Expectation-
vii. Number of Sellers+
横向比较：在同等价位/成本（P）价时可以生产出更多/更少的商品（Qs）
纵向比较：在同一个产量水平上的成本（cost）提升/下降了
5) Explain the market equilibrium.

i. supply和demand curve相交得出市场均衡点（均衡价P*及均衡交易量Q*），考试时
注意market equilibrium的别称叫做market clearing theory。
a) at equilibrium price（P*），quantity is also in equilibrium（Qs = Qd）
ii. 当市场价不等于P*时
a) P > P* surplus滞销；Qd小于Qs
b) P < P* shortage短缺；Qd大于Qs

6) Analyze how the change in supply and/or demand affect(s) price and quantity.
a. supply和demand的平移以及对市场的影响的知识点会贯穿整个ECON103的课
b. 考试时如果对表格印象模糊，记得尽可能的画图现场推理。同时谨记无论是
demand还是supply，curve都是“左减右增”。
c. 千万记住在两个curve同时平移时，价格和数量的效益在对冲时形成的结果叫
ambiguous。

Elasticity and Its Application (Ch. 5)
1) Explain elasticity：观测价格（price）浮动1%时对应的数量（quantity）浮动，则为弹
性（elasticity）。
解释弹性数值所用模板：When price changed by 1%, the quantity consumed in the

market will change by elasticity%
2) Use the midpoint method to calculate elasticities.

𝐐𝟐G𝐐𝟏
𝐐𝟐H𝐐𝟏
△𝐐% （ 𝟐 ）
𝐎𝐰𝐧 𝐏𝐫𝐢𝐜𝐞 𝐄𝐥𝐚𝐬𝐭𝐢𝐜𝐢𝐭𝐲 = △𝐏% = 𝐏𝟐G𝐏𝟏
𝐏𝟐H𝐏𝟏
( 𝟐 )
𝐐𝟐G𝐐𝟏
𝐐𝟐H𝐐𝟏
△𝐐% （
𝟐
）
𝐈𝐧𝐜𝐨𝐦𝐞 𝐄𝐥𝐚𝐬𝐭𝐢𝐜𝐢𝐭𝐲 = △𝐈𝐧𝐜𝐨𝐦𝐞% = 𝐈𝐧𝐜𝐨𝐦𝐞𝟐G𝐈𝐧𝐜𝐨𝐦𝐞𝟏
𝐈𝐧𝐜𝐨𝐦𝐞𝟐H𝐈𝐧𝐜𝐨𝐦𝐞𝟏
（ 𝟐 ）
𝐐𝐱𝟐G𝐐𝐱𝟏
𝐐𝐱𝟐H𝐐𝐱𝟏
△𝐐𝐱% （
𝟐
）
𝐂𝐫𝐨𝐬𝐬 𝐏𝐫𝐢𝐜𝐞 𝐄𝐥𝐚𝐬𝐭𝐢𝐜𝐢𝐭𝐲 = △𝐏𝐲% = 𝐏𝐲𝟐G𝐏𝐲𝟏
𝐏𝐲𝟐H𝐏𝐲𝟏
（ 𝟐 ）
三种不同的弹性公式只是将分母部分（denominator）针对相应名称的变量（own
price，income，cross price）进行替换；牢记这点可以节约背诵时间。
3) List and explain the determinants of the price elasticity of demand.

a. availability of close substitute +
可替代的商品越多，本商品弹性越大
b. necessities VS luxury –
商品的必要性越大，弹性越小
c. definition of market –
对市场的定义越宽泛，弹性越小
d. time horizon +
对价格的反应时间越长，弹性越大

4) Relate the price elasticity of supply and five different classifications of supply curves.
perfectly elastic supply水平
elastic supply较平缓
unit-elastic supply弯曲斜线
inelastic supply较陡峭
perfectly inelastic supply垂直
弹性（elasticity）越大，曲线越平缓

5) Relate the price elasticity of demand and five different classifications of demand curves.
整条curve从左上角出发向右下角沿线移动，demand curve每个点弹性会一直变化，弹性
值（elasticity）越来越低。
a. 对高弹性客户（价格敏感sensitive to the price）降价，可以获得total revenue提升的
效果
b. 对低弹性客户（价格不敏感not sensitive to the price）涨价，可以获得total revenue
提升。
c. 对单位弹性客户（unit elastic），total revenue已经最大化，无需另外改变价格

6) List and explain the determinants of the price elasticity of supply.
决定supply curve的弹性数值主要因素是反应时间（response time），反应时间越长，
supply curve弹性越大；其次就是现有富余的产能（excess capacity of production），富
余产能越大，弹性越大。
7) Explain why good news for farming is bad news for farmers.
technology increase in agriculture product will increase the supply curve of agriculture
product, which cause the price to fall. Most of the agriculture products are inelastic
product, thus the total revenue of farmers tends to decrease.
解释：good news for farming一般指生产上可以增加产量。supply curve增长后农产品市
场价格会下降；一般农产品属于inelastic的产品，具有刚需，单价低的特性。当
inelastic的产品的价格下降，total revenue会同步下降。
8) Explain why OPEC fails to keep the price of oil high.

short run market is very inelastic, because the time length will decrease the elasticity for
both demand and supply side. for the long run, both supply and demand side is elastic,
which for the same magnitude of supply curve decrease, the effect of increase in price will
be smaller than in the SR.
短线弹性低，supply curve decrease可以造成价格明显上涨。长线弹性高，supply curve
decrease导致价格上涨的幅度较低。
9) Explain why drug interdiction increases drug-related crime, but drug education may
decrease drug-related crime.
Drug interdiction（毒品禁令） decreases the supply of drug, for an inelastic demand of
illegal drugs, the effect would be large increment of price increase; drug users will involve
for crime to finance their drug expense.

Drug education（戒毒教育）decrease the demand of drug, which will lower the market
price of drug, price of drug decrease will lower the spending on drug, then lower the crime
rate.
drug interdiction毒品禁止的效果是降低毒品的供应, 在已知毒品的demand curve是非常
inelastic的情况下，Supply decrease导致毒品价格会大幅度上升，吸毒者们为了能有足
够的钱来吸毒，会增加犯罪行为来赚钱。
drug education毒品教育是对毒品的demand curve进行压制，降低了毒品的demand后，
demand decrease毒品的市场价值会下跌，价格降低后瘾君子们购买毒品的开支降低
了，相应的降低了犯罪率。

Supply, Demand, and Government Policies (Ch. 6)
1) Explain how a price ceiling affects the price and quantity sold.价格屋顶
控制合法最高价（legal maximum price）
实际案例：rent control房租控制
效果：价格低于市场均衡，成交量低于equilibrium quantity，形成dead weight loss（市场
失灵）。
特殊考点：形成black market：不签约不申报管理部门，用高于限制价格方便买方快速完
成交易。

2) Explain how a price floor affects the price and quantity sold.价格地板
控制合法最低价格（legal minimum price）
实际案例：minimum wage最低工资标准
效果：价格高于市场均衡，成交数量低于equilibrium quantity，形成dead weight loss（市
场失灵）。
特殊考点：1）政府将滞销的货物全数按照规定价格收购
2）失业率（Qs – Qd = number of unemployment）

3) Explain how a quota affects the price and quantity sold.配额，限制数量
控制交易数量不得高于规定，每个交易者只能通过permit的数量进行交易。
实际案例：鱼证，控制鱼的数量，防止鱼群消减。
效果：直接控制交易数量，并低于market equilibrium price。
特殊考点：quota rent，两个价格之间的差值。

4) Explain how a tax affects the price and quantity sold.税务
实际案例：政府向某一商品的交易按照每个单位进行征税（per unit tax）
效果：通过提升消费者需要支付的价格同时降低生产方可以获取的收益，来降低市场交易
量。
Consumption Tax
1. 政府会发文表明向某商品的购买方新增税收。
2. 购买方的购买成本增加，降低了获取商品得到的效益。
3. 卖方为了在买方收益下降的情况下顺利将产品卖出，会依照税后价格相应下降卖
家，使得产品顺利卖出，如此变向的承担了部分税收。
Production Tax
1. 政府发文对本产品的公司进行税务征收。
2. 生产方由于需要缴付税收，等于生产的成本增加。
3. 成本增加后，生产方会适当加价使得消费者变向承担部分税收。

总结：无论在题目或已知条件中，tax是”on buyer”, ”on producer”，最终不影响题目所要
求出的参数：consumer surplus, producer surplus, consumer’s burden of tax, producer
burdens of tax，dead weight loss。（必考考点：imposition of tax is not matter）

5) Explain how a subsidy affects the price and quantity sold.补贴
实际案例：新能源车补贴
效果：通过降低消费者需要支付的价格同时提升生产方可以获取的收益，来增长市场交易
量。
政府许诺对某商品的交易进行补贴。
对消费者：在原价格基础上，部分金额由政府承担，可以让消费者以更低的金额支出获得
商品。
对生产者：在原价格基础上，政府为生产的承担部分生产成本，使得消费者可以获得更高
的每单位利润。
对市场：subsidy会促进市场的交易数量，使得交易数量在原equilibrium quantity基础上继
续增加，使得subsidized quantity＞equilibrium quantity （DWL形成）

6) Explain tax incidence买方及卖方共同对税收分摊
Distribution of Burden of tax among buyers and sellers

Consumer Burden of Tax: price for buyer > equilibrium price 消费者购买价与P*的差值
Producer Burden of Tax: price for seller < equilibrium price 生产者的收取费用与P*的差值
7) Explain the relationship between elasticity and tax incidence.

Elasticity is negatively related to tax incident. 生产方或消费方弹性越高，承担税务比重越
小。
• 弹性越高会使得supply和demand越平缓，对应tax burden面积比较小。
• 弹性反应出消费者/生产者对价格的敏感程度。tax使得消费者价格增高，quantity降
低；生产者收益降低，quantity降低。如果对价格的敏感性（elasticity）越高，那么受
影响的数量会越大，从而承担更少的税务占比。

8) Calculate the equilibrium price and quantity with taxes.
例题计算
Qd = 20 – 2P
Qs = -10 + 4P
Tax = $3/unit
1. 将supply，demand方程调整为P(Q)的inverse function
2. 将$3的税额从demand inverse function中减去或者加在supply的inverse function 中。
3. 用新的supply与demand相等计算交点quantity得出Qt，Qt < Q*
4. Qt带入税前原始方程得出两个不同价格：高的价格为Pb（买方购买价格），低的价格
为Ps（卖方收取费用）

Consumers, Producers, and the Efficiency of Markets (Ch. 7)
1) Define the willingness to pay for a good.消费者意愿支付价值
WTP is the highest amount of price the consumer willing to give for a certain quantity of a
goods.
• 消费者按照商品数量对自身的利益所得的最高愿意支付价值。
2) Explain the link between consumers’ willingness to pay and the demand curve.
The WTP represent the highest amount of money consumer willing to give for any quantity,
thus the price of the goods for consumer in any quantity is shown, which we called
“demand curve”. Both WTP and demand curve shows the inverse relation of goods price
and quantity demanded of the goods.
• 消费者按照商品不同数量对自身所带来的利益得到最高愿意支付价格，在不同商
品数量时消费者可以知道自己最高能承受什么样的价格。
3) Define and measure consumer surplus.

Total willingness to pay for certain amount of goods can also see as total benefit for getting
that quantity of goods;
total benefit minus the total cost consumer give up for these goods, get the surplus from
consumers.
• 当商品的实际成交数量对消费者所带来的价值要高于实际购买成本时，消费者可
以获得盈余利益（consumer surplus）
• 将所有consumer surplus相加形成的面积叫做total consumer surplus。
4) Explain the link between producers’ cost of producing a good and the supply curve.
Producer’s production cost also called marginal cost, which represent the lowest price
producer willing to accept when they produce and sell given quantity of goods. Producer’s
marginal cost curve transfer to supply curve to give a concept of positive relationship of
selling price and quantity supplied, that is we called “supply curve”.

• 生产者在新生产一个单位的商品是所造成的额外成本（marginal cost）代表了本商
品卖家最低愿意卖多少钱。生产数量越多，额外成本（marginal cost）越高。
5) Define and measure producer surplus.

The total revenue producer received from consumer minus the total cost producer made
for producing that goods, which is also the profit of producers.
• 当商品成交的标价高于生产方的成本时，可以获得利润（profit），也就是
consumer surplus。
6) Define market efficiency.

Market efficiency means the supply and demand curve intersect and determined the
quantity the buyer would like to buy and seller would like to sell at that price. Market
efficiency means all buyers accept the current price can get the amount they want, and
seller can sell out all their product at current price.
• 在市场在均衡点时，market is efficient，total surplus（consumer + producer
surplus）is maximized。
7) Explain why the market equilibrium maximizes total surplus in a market.

Market efficiency means all buyers accept the current price can get the amount they want,
and seller can sell out all their product at current price. Both seller and buyers are
maximized their net benefit at equilibrium price and quantity.
• 买方可以在目前的价格获得所有自己想要的数量。
• 卖方可以在目前的价格卖出所有自己愿意生产的商品
• Total surplus最大化
8) List and explain the two sources of market inefficiency.

government policy and externality. externality本节课不学。

The Costs of Taxation (Ch. 8)
1) Examine how taxes reduce consumer and producer surplus.
Taxation reduce quantity for both supply and demand side, which will lower consumer surplus
and producer surplus.
2) Define and measure the deadweight loss of a tax.
• DWL本质上是说在征税市场中，不被买、卖、政府三方所得的收益。
• 在图像中，tax形成的dead weight loss存在于equilibrium quantity和taxed quantity的夹
角。
3) Explain the causes of the deadweight loss of a tax.

税务在本质上增加了消费者的购买成本，降低了生产者的营收金额，买卖双方对改变之后
的收益与成本进行相应调整，降低了市场的成交数量，低于optimal level（Q*）。

4) List and explain the determinants of the deadweight loss.
tax amount每个单位的税额：
elasticity of the market市场supply和demand的弹性:
the higher the elasticity of market, the higher the DWL caused by tax is increase.

5) Explain how the deadweight loss varies with the size of a tax.
6) Explain how the tax revenue varies with the size of a tax.

7) Measure the DWL of subsidy, price ceiling, price floor, and quota.
在各个图像中找到DWL的相应位置：除了subsidy在交点右边，其他都在交代左边。
DWL永远加在实际成交数量（Q）与market equilibrium（Q*）之间。

International Trade (Ch. 9)
1) Use the world price and the domestic price without trade to determine whether a country
imports or exports a good.
Domestic price < World price 国家出口
Domestic price > World price 国家进口
2) Determine the winners and losers from international trade.

当国家进口（import），卖家损失，买家获利。获利大于损失，total surplus提升。
当国家出口（export），买家损失，卖家获利。获利大于损失，total surplus提升。
3) Show how trade increases the economic well-being of a nation.
出口国家
A：consumer surplus（↓）
BCD：producer surplus（↑）

进口国家
ABD：consumer surplus（↑）
C：producer surplus（↓）

4) Analyze the welfare effects of tariffs.
consumer surplus decrease：-（C, D, E, F）
producer surplus increase：+（C）
government gain tax revenue：+（E）
society gain DWL (market failure)：D,F

5) Analyze the welfare effects of import quotas.
consumer surplus decrease：-（C, D, E, F）
producer surplus increase：+（C）
exporter of trade partner increase profit：+ D, E, F
6) Examine the arguments people use to advocate trade restrictions.

提倡对贸易进行限制的主要原因：
a. Job-Arguments
b. National Security Arguments
c. The Infant Industry Arguments
d. The Unfair Competition Arguments
e. The Protection-as-Bargaining-Chip Arguments

The Costs of Production (Ch. 13)
1) Differentiate explicit costs and implicit costs.
Explicit Cost: 显性成本，需要真实付出资金的费用.（注意题目中出现的depreciation，
以及在borrowing money时的interest rate）
Implicit Cost: 隐性成本，不需要真实付出资金，而是因为从事本工作而放弃的其他best
alternative.（注意题目中出现的自己本身在银行当中的存款的interest rate）
2) Differentiate accounting profit and economic profit.

• accounting profit = total revenue – explicit cost
• economic profit = total revenue – explicit cost – implicit cost
= accounting profit – implicit cost
• 注意：economic profit ≤ accounting profit，往后无论是在perfectly competition market
还是monopoly market所计算的都是economic profit。
3) Define total product, marginal product of labor, marginal product of capital, average
product of labor, average product of capital.
Total Product(Quantity of output): Q = f(K, L) 将L（labor）和K（capital）作为input，经
过process来产生Q（quantity of output）

Q SQ
Marginal Product of Labor: 𝑀𝑃P = P RS PT 新增工人数量所带来的额外产能
R T
( S(
Marginal Product of CapitalMPW = X RS XT 新增设备数量所带来的额外产能
R T
(
Average Product of Labor：APZ = Z 现有所有的工人平均每个人生产多少
(
Average Product of Capital：APW = W 现有的所有设备平均每台设备生产多少
4) Explain the relationship between the marginal product and the average product.必考
Marginal product = Maximum average product
边际产能（marginal product）相差与平均产能（average product）时，会改变平均产能的
数值。
大家可以联想一下自己的总GPA和单学期GPA影响的关系。
5) Define and measure the various types of costs – TC, FC, VC, ATC, AVC, AFC, MC, etc.
TC total cost 总成本，涵盖生产所带来的所有费用开支
FC fixed cost 固定成本，一般特指公司/工厂的设备与场地费用，SR（短期）内无法变
动。在长期（LR）时是可以变动的数值。
VC variable cost 变动成本，一般特指生产方的人工费用，工资乘以人数。短期内可以
发送变化。
• ATC = TC/Q = average total cost = 平均总成本
• AFC = FC/Q = average fixed cost = 平均固定成本

• AVC = VC/Q = average variable cost = 平均变动成本
• MC = marginal cost = △TC/△Q 边际成本，指新增一个单位的产量时额外增加的成
本。另外可以写作marginal cost = △VC/△Q 作为边际成本，因为短期（SR）时有FC
cost，是无法改变的变量。
• ATC = AFC + AVC
6) Explain the relationship between AP, MP, ATC, and MC.

product（AP, MP）与cost（AC, MC）在图像上为横轴对称，意为在平均/边际成本与平
均/边际产量是呈现反比的。
在图像自身，MC = min AC；MP = max AP。边际效益与平均值直接的拉扯关系。

7) Differentiate the costs in the short run and the costs in the long run.
Short Run（SR） Costs Structure Graph
短期（SR）时，成本结构最大的特点就是无法改变的生产因素对应了fixed cost。牢记
图像以及各个成本直接的位置和大小关系：MC, ATC, AVC, AFC。
本图需要牢记，在后续perfectly competitive章节中会反复出现。
Long Run（LR）Cost Structure Graph
不用硬性要求记住这个图，但一定要记住:
1. economic of scale（increase return to scale）

2. constant return to scale
3. diseconomies of scale（decrease return to scale）

8) Explain how LRATC changes as the scale of production changes.
• economic of scale（increase return to scale）在公司增加capital数量时，产量增大同
时反映出生产的ATC逐步降低
• constant return to scale: 在公司增加capital的数量时，产量增大同时ATC维持稳定不
变，也是所有公司生产规模维持时间最长的阶段。
• diseconomies of scale（decrease return to scale）：在公司增加capital数量时，产量
增大同时ATC开始逐步提升。主要愿意是公司规模过大在协调（coordination）和交
流（communication）方面需要额外支出费用。

Firms in Competitive Markets (Ch. 14)
1) Explain the meaning of a competitive market.
a. many buyers and many sellers in the market.
b. homogeneous goods
c. free entry and exit
综上原因，perfectly competitive firms都是price taker，只能被动接受价格（market
equilibrium price P*）不能自主定价。
2) Show the relationship between MR and AR of a competitive firm.

For perfect competitive firm’s cost structure graph: P = Demand = MR = AR

3) Explain how a competitive firm’s profit-maximizing decision leads to its supply curve.
MR = MC使得公司可以决定出按照现有市场价格所能带来最大利润的生产数量（profit
maximized quantity）。
注意：profit maximized quantity不代表一定是有positive profit，在这里的意思是即便市
场价格过低，公司亏损，亏的也是最少的。
P = MC 得出最优化产量q*
用最优产量、市场价格、生产单位对应的ATC，得出total revenue与total cost相减得出

profit

例题：
Total Cost = 0.5Qe + 2.5Q + 72
MC = Q + 2.5
a) Determine the AV, ATC, AFC
b) Determine the firm’s quantity when current price = $11.5
c) Determine the firm’s quantity when current price = $20.5
d) Determine the firm’s profit when current price is $20.5
e) Determine the number of firms in this industry when total market supplied is 20000.
4) Show the difference between shutdown and exit.

shut down is a SR decision, which happens when P < min AVC
exit is a LR decision, which happens when P< min ATC in Long Run.
a. Explain the shutdown condition of a competitive firm.
当P < ATC时，公司可以将fixed cost在short run当成是sunk cost，无论是否继续经
营，固定费用已经付出。
当P < AVC时，由于市场价格无法承担变动开支（人员工资，物料成本），生产数量
越大亏得越多，所以公司会觉得即便房屋租金已交也不再继续运营，决定shut
down。

5) Explain the exit condition of a competitive firm.
在LR长期，当P < ATC时，公司无法再次支付Fixed Cost，决定退出（exit）市场。
6) Show the relationship between market supply curve in the short run and in the long run.
7) Explain why the LR market supply curve might be flat or upward-sloping.

LR market supply curve has higher elasticity, because the longer time length gives firms
more time to responding for market price by choosing produce less or more.时间段越长，
公司有越多的时间根据市场定价改变自己profit最大化的产量，所以公司在长期生产弹
性更大。

8) Long Run Equilibrium of Perfect Competitive Firms
In the long run, Zero economic profit: P=ATC
• 当短期盈利（short run P＞ATC），市场会有新的竞争者进入，导致市场上供应能
力增强，价格下降。价格回归 P = ATC
o Profit > 0 in the short run; supply increase in the long run, market price decrease,
profit back to zero again.
• 当短期亏损（short run P＜ATC），市场会有其他公司选择退出，导致市场供应能
力下降，价格上升。价格回归 P = ATC
o Profit < 0 in the short run; supply decrease in the long run, market price increase,
profit back to zero again.
注意：在这里的 profit 记的都是 economic profit，并不是代表 firm 一分钱都赚不到，意思
是无法获得相较于以前更高的收益。

Monopoly (Ch. 15)
1) Define the monopoly market and explain why monopolies arise.
Monopoly的定义与特征：
only（sole） producer of a certain market

no close substitutes.
Monopoly has market power（pricing power）.
Monopoly 形成的原因/行业进入的壁垒：
Monopoly resource: 关键资源的控制
Government created: 合法资质授权
Natural monopoly: 经济规模（economies of scale）造成垄断
2) Differentiate the demand curve that a competitive firm faces and the demand curve that
a monopoly firm faces.
a) Monopoly firm的demand是downward sloping（向下），perfectly competitive的demand
是一天horizontal line（水平线）。
b) monopoly的demand curve有quantity effect（数量效益，与价格效益成反比，使得
demand curve向下）。perfectly competitive market的demand curve没有quantity effect
（单一公司无论产量是多少，市场价格不会受到影响。）

3) Explain the relationship between MR and Price in the monopoly market.
a) Demand curve才是决定monopoly公司可以收取的市场价格的决定性曲线
b) Marginal revenue表示额外销售一个单位时可以获得的额外的Total Revenue
c) 由于downward sloping的demand造成quantity effect，MR < Price
d) MR curve等于demand curve的两倍斜率。
e) Demand curve的X-intercept的一半为MR的X-intercept

4) Solve the profit-maximization problem in the monopoly market.
a) 通过MR = MC得出最优产量的monopoly quantity（Qm）
b) 通过Qm得出monopoly price（Pm）以及相应产量的total cost
c) total revenue – total cost = profit

注意：
• MR = MC 适用于所有行业的 profit maximization output 的确认。
• Monopoly 的 MR 是 demand curve 的两倍斜率，也就是 demand curve 的 x intercept 的
一半就是 MR curve 的 x intercept。
• Monopoly 通过 MR = MC 确认 quantity，通过 demand curve 确认 price，从而 Price ＞

MR = MC
计算题：
在考试当中，老师必定给出的条件有：
• Demand function
• Supply function（同时也是 firm’s marginal cost function）
• Total cost function

自己需要通过公式推导得出的条件有：
• Marginal revenue function：inverse demand curve 的两倍斜率
• Average total cost function：total cost function 除以 Q 后化简

例题：
demand: P = 100 – 0.5Q
supply (marginal cost): 4 + Q
total cost: 1250 + 4Q + 0.5Qe
5) Explain why a monopoly does not have a supply curve.

monopoly firms’ marginal cost represents market supply curve of a monopoly market.
6) Define and measure the DWL of monopoly.

monopoly causes dead weight loss垄断对市场造成市场失灵
• Monopoly 的公司只关注于自己的利润最大化，并不会对整个社会或者市场的有效性负
责，因此垄断公司如果坚持采用利润最大化的定量及定价策略，一定会导致市场出现
DWL。
• DWL 的问题是政府需要关注和解决的，因此政府单位会通过一系列管制对 monopoly
firm 进行管制（Price Regulation），控制市场失效（DWL）的发生。

垄断公司只生产对公司本身利润最大化的产量，而不是market efficient quantity。
与perfectly competitive firm（Pc，Qc）进行对比：
Qm < Qc = Q*
Pm > Pc = Q*
insufficient produced quantity caused DWL（如上图）

7) Explain three types of price discrimination.
1st price discrimination（perfect price discrimination）
所有消费者的 WTP 等于公司的产品定价，所有消费者以自身可承受最高价格购买商品。
市场不存在 consumer surplus 也没有 DWL 的产生。（现实生活中不可能发生）
2nd price discrimination

针对购买数量的增减给与不同定价，消费者买的越多越便宜。

3rd price discrimination
通过两个不同的 demand 得出两个不同的 marginal revenue，根据公司自身的 marginal cost
在不同的 demand curve 中得出两个最优产量，两种价格。确保在较低的 demand curve
（右图）时合适的定价可以将产品卖出。
价格歧视的本意是将同样的产品以不同的定价卖个不同的消费者，必要条件是 monopoly
firm 对客户的信息有充足的了解，从而可以通过适当的改变定价来达到：压缩 consumer
surplus，增加 profit，降低 DWL 的效果。
选择题的逻辑推理：
价格歧视分为：1st degree, 2nd degree, 3rd degree 三种，顺序为从三级到一级逐步升级。
升级后的价格歧视较前一级对比：
• consumer surplus 更小
• producer surplus 更大
• DWL 更小
一级价格歧视的效果为:
• total surplus = producer surplus

• consumer surplus and DWL = 0

8) List and explain various policies toward monopolies.
ATC pricing 导致 firm’s profit = 0，DWL still appear.（在这里，profit 指的是 economic
profit，经济利润。经济利润≤账面利润，所以公司账面上其实是有资金入账的，同学们不
用担心公司活不下去。）

MC pricing 使得 market 回到 equilibrium，但是 firm 自身会有 economic profit＜0 的情况出
现，政府启用 MC pricing 的监管政策必须要对 monopoly frim 补偿它投入的固定成本
（fixed cost）
9) List the difference between perfect competition and monopoly.

Ch1. Introductory Materials

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Ch1.

Trade-off： to get more of one thing, we have to give up another thing

ii. opportunity cost不一定是金钱价值

iii. 如果X产品的OC# = Y/X，那么Y产品的OC$ = X/Y = 1/OC#

Youplus Education Inc. 1 内部资料，请勿外传

cost to choose the best quantity.

通过考虑下一步行为所产生的，新增的收益（marginal benefit）和成本（marginal cost）

Rational People make the marginal analysis to make the decision.

Use marginal reasoning in decisions-making: 用MB = MC的公式得出效益最大化的数量。

Youplus Education Inc. 2 内部资料，请勿外传

b) Mathematic Model: 通过公式，代数等因素形成一个能用公式解释简单状况的模

c) Graphic Model: 通过图像对现实时间进行描述。

2) Differentiate positive statement and normative statement:

• is, are, can, will

• "government should provide basic healthcare to all citizens"

Youplus Education Inc. 3 内部资料，请勿外传

One producer, resource with scarcity, two product consuming resources.

直线Straight line: constant opportunity cost

Youplus Education Inc. 4 内部资料，请勿外传

Comparative Advantage：比较优势，机会成本（give up/gain）较低。

2) Explain the relationship between absolute advantage, comparative advantage,

4) Use PPF model to explain the gains from trade.

• 线内：affordable but inefficiency

Youplus Education Inc. 5 内部资料，请勿外传

也可以通过产品生产的unit cost或者是最大产量来对双方生产两个产品的opportunity cost

Youplus Education Inc. 6 内部资料，请勿外传

Meat Potatoes Meat Potatoes

rancher和farmer通过对两个产品opportunity cost的计算，决定了comparative advantage

• Farmer have C.A in producing potatoes.

Youplus Education Inc. 7 内部资料，请勿外传

• OCL Smoothies (Opportunity Cost for Liz to produce smoothies) = 5 salads

Youplus Education Inc. 8 内部资料，请勿外传

Youplus Education Inc. 9 内部资料，请勿外传

变不影响整根线，只是沿线移动move along the curve).

ii. Price of Related Goods

Youplus Education Inc. 10 内部资料，请勿外传

5) Explain the market equilibrium.

注意market equilibrium的别称叫做market clearing theory。

a) at equilibrium price（P*），quantity is also in equilibrium（Qs = Qd）

Youplus Education Inc. 11 内部资料，请勿外传

Youplus Education Inc. 12 内部资料，请勿外传

解释弹性数值所用模板：When price changed by 1%, the quantity consumed in the

2) Use the midpoint method to calculate elasticities.

3) List and explain the determinants of the price elasticity of demand.

Youplus Education Inc. 13 内部资料，请勿外传

perfectly inelastic supply垂直

Youplus Education Inc. 14 内部资料，请勿外传

a. 对高弹性客户（价格敏感sensitive to the price）降价，可以获得total revenue提升的

b. 对低弹性客户（价格不敏感not sensitive to the price）涨价，可以获得total revenue

c. 对单位弹性客户（unit elastic），total revenue已经最大化，无需另外改变价格

Youplus Education Inc. 15 内部资料，请勿外传

supply curve弹性越大；其次就是现有富余的产能（excess capacity of production），富

8) Explain why OPEC fails to keep the price of oil high.

Youplus Education Inc. 16 内部资料，请勿外传

drug education毒品教育是对毒品的demand curve进行压制，降低了毒品的demand后，

Youplus Education Inc. 17 内部资料，请勿外传

控制合法最高价（legal maximum price）

效果：价格低于市场均衡，成交量低于equilibrium quantity，形成dead weight loss（市场

Youplus Education Inc. 18 内部资料，请勿外传

控制合法最低价格（legal minimum price）

效果：价格高于市场均衡，成交数量低于equilibrium quantity，形成dead weight loss（市

2）失业率（Qs – Qd = number of unemployment）