有錢人：又想上 EMBA 的課又想打高

Chapter 1 What is Economics? 爾夫

窮人：又想吃飯又想吃肉
Definition of Economics
All economic question and problems arise from Scarcity
Must choose along alternatives
Economics: a science of choice, how choices are made to cope with scarcity

8 Big Ideas of Economics

1. Choice, Tradeoff, and Opportunity Cost
Opportunity cost is the highest-valued alternative we give up to get something

2. Margins and Incentives

Margin: 下個小時可以拿來 email 朋友 or 唸書，但不是 all or nothing, 要決定念幾分鐘書打幾分鐘
email 最有好處。這時就是在 margin 附近做決定

Marginal Cost, Marginal Benefit: the whole point of deciding near the margin
Incentive: inducement to take a particular action, can be carrot or stick

3. Voluntary Exchange and Efficient Markets

Voluntary Exchange: 雙方答應就交換了 ex: money for a basket of vegetable
Efficient: 因為會把資源分配到最需要（價格最高）的地方
Market: where exchange takes place
Market economy vs command economy(soviet union)

4. Market Failure
有些情況，政府還是要出面，以免造成 market failure
a. 獨佔事業拉台價格
b. 廠商不考慮 pollution 等對於公共財產的危害
c. 國防預算等…沒人想自願出，只好由政府出面

5. Expenditure, Income, and the Value of Production

Economy as a whole, expenditure = income = value of production

6. Living Standards and Productivity Growth

Living standards improve when production per person increases
Increase in population increases net production, not average production
價格上揚，會使勞工收入增加，只是增加的剛好拿來支付物品漲價的錢

7. Inflation, a Monetary Problem

Inflation: money increasing faster then production
用的好可以： 增加產量和就業機會 （因為公司又有一點資金）
用過頭： inflation orz
8. Unemployment: Productive and Wasteful
Productive: 當公司尋找對的人，人尋找對的公司時，造成的失業是有助於經濟成長
Wasteful: 因為技能不足 or 被裁員的失業

What Economists Do
Microeconomics: 研究個人或者公司做的決定，和他們這些決定所引起的互動
Macroeconomics: 研究國家＆全球經濟。注重 average price and total employment, income,
production
Cetebris paribus: Other things remain the same
Fallacy of Composition: 個體行為的效果加總不一定＝整體效果 and vice versa
一家公司裁員以減少成本增加收入，但如果所有公司都這樣做，消費
者平均收入和支出下降，公司產品賣不出去，獲利也下降

Post Hoc Fallacy: A 比 B 先發生，不代表 A 導致 B

外星人到地球：看到 12 月初很多人買東西，然後聖誕節拆禮物，推測是商
店造成聖誕節送禮物 (實際上是因為有聖誕節所以有很多人買禮物)

Chapter 2 Reading Graphs

There are 3 kinds of lies “lies, damned lies, and statistics”

Chapter 3 The Economic Problem

Resource and Wants
Limited resources + unlimited wants => scarcity
Economics is the study of the choices people make to cope with scarcity

Resources, Production Possibilities, and Opportunity Cost

Production Possibility Frontier (PPF): 兩種貨物的生產量可能組合，其他所有條件不變
Production Efficiency: 如果已經在 PPF 上了。不在的話代表可以生產更多的一種產品 or 更
多的兩種產品。在 PPF 上，要生產更多某個產品就需要 tradeoff
Opportunity Cost: the cost of the highest alternative
Ratio: 兩種物品的價值互成比例 ex. 1 罐汽水 ＝ 1/3 個 tape
Increasing Opportunity cost: 越極端，機會成本越高
汽水 vs tape: 到後面，為了增加一個 tape, 需要把 PepsiCo 工作人員調到 3M,
tape 沒有增加很多，可樂卻減少很多 ie 1 個 tape = 10 罐汽水

Economic Growth (擴大 PPF 方法 1)

2 key factors: Technological change, capital accumulation
Growth comes at an 機會成本 of goods manufactured/comsumed today
 Economic growth 會使 PPF 往外推 for next year

Trading (分工 and 專業化) (擴大 PPF 方法 2)

Comparative Advantage: 當製造某一產品的機會成本比別人低時
Gain from Trade: 每個人生產有相對優勢的產品再交換，可以擴大 PPF
Absolute Advantage: 用同樣資源，硬是可以製造出較多的東西
Tom 精於製造 tape, 製造 3 個 tape 才能造出一個 case
Nancy 精於製造 case, 照造 3 個 case 才能造出一個 tape
現在 Nancy 發明專利，使的他的生產量增加 4 倍，製造 tape or case 都比 Tom 快
但，Nancy 1 個 tape 的機會成本還是 3 個 case，Tom 還是有相對優勢
conc: 不可能有人對所有產品都有相對優勢

Dynamic Comparative Advantage: 人做久了有經驗，造就相對優勢（新加坡，香港）

Note: 沒有用更多的資源就有辦法擴大 PPF, that is growth

Market Economy
要上述的交易後 PPF 直上升的情況發生，需要
1. Property rights (財產權): 如果大家都可以亂搶的話，分工製造動力下降
2. Market :要有可以交換產品的機制

Chapter 4 Demand and Supply

Note: 製造商只有價格超過 opportunity cost 才賣（廢話，but think）

Factors that Causes Changes in Demand (vs quantity demand)

Price of related goods (complement, and substitutes)
Expected future price
Income (inferior goods, normal goods, luxurious goods?)
Population
Preferences
Note: Demand Curve == willingness-and-ability to pay curve == marginal benefit（邊際效益遞減）

Law of Demand
Happens because of a. substitution effect b. income effect

Factors that Causes Changes in Supply (vs quantity supplied)

Price of resources used to produce the good
Price of related goods produced (substitutes, and related goods ex: beef and cow hide)
Expected future prices
Number of suppliers
Technology
Note: supply curve == minimum supply price == marginal cost
Change in Supply and Demand
最終的價格和數量由拉鋸戰得來。清楚拉鋸戰參賽者的變因和孰大孰小，即可掌握動向

＊ ＊＊需求和生產曲線的 X 軸，都是某某數量 per 時間單位!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Chapter 5 Elasticity
Demand Elasticity
Elasticity 的 unit elasticity 是類似 y=x^-1 的曲線 (但是 0 和 oo 也是直線，詭異)
直線中點的彈性＝1
oo = perfect elastic > elastic > 1 > inelastic > perfect inelastic = 0
最大營收在彈性＝1 的點，在下來會造成營收的萎縮 (?)

Factors that Influence the Elasticity of Demand

和產品定義也有關：肉類產品彈性低，but
The Closeness of substitutes: 雞肉牛肉羊肉的個別彈性很高
(cross elasticity of demand)
Proportion of Income spent on goods
一包口香糖漲價兩倍，頂多少吃一點點;租房
(income elasticity of demand) 子漲價兩倍，就會哇哇叫趕快去找合夥人
因為租房子是大預算

Time Elapsed Since a Price Change: 大家會慢慢找其他消費方法的

Cross Elasticity of Demand

Income Elasticity of Demand
1. greater than 1 (normal good, income elastic, luxury)
2. 0~1 (normal good, income inelastic)
3. <0 (inferior goods)

Elasticity of Supply
Unit elasticity 是 y = -x

Factors that Influence the Elasticity of Supply

Resource substitution possibilities (生產時有無稀有原料，生產難易度，生產的國家數)
Time frame for the supply decision
Momentary Supply: 價格一上去後，廠商的反應（橘子的話是無限大，無法反應，但電
信業者如果有很多人打電話的話，他們可以立刻都讓他們打通）
Short-run Supply: 廠商開始慢慢調整但未調整完畢（工廠強迫工人加工，等臨時性）
Long-run Supply: 廠商用盡各種手段調適完畢（多蓋好幾個工廠等等）

Note: Elasticity: 要習慣 think forwards and backwards: 彈性小  價錢小變動數量不會改變很多  數

量改變一點價格就會改變不少
Note: 影印 p101
Chapter 6 Efficiency and Equity
Efficient: resource use is efficient when we produce the goods and services that we value most highly
If people value a nuclear-free environment more highly than they value cheap electric power, it is efficient
to use higher-cost, non-nuclear technologies to produce electricity. Efficiency is not a cold mechanical
concept. It is a concept based on value, and value is based on people’s feelings

Value Price and Consumer Surplus

Price is what we pay, value is what we get
Consumer surplus: (value of a good) – (price paid for it)
Cost Price and Producer Surplus
Cost is what a producer gives up, price is what a producer receives
Producer Surplus: (Price of good) – (opportunity cost of producing it)
Is Competitive Market Efficient?
An efficient market maximizes consumer surplus and producer surplus （自己畫圖指出）

Obstacles to Efficiency
Price Ceilings and Floors: Ceiling on apartment rent, floor on minimum wage
Taxes, Subsidies, and Quotas: 稅生產者收入低消費者支出高，優惠使生產者收入高消費者支
出低，限量使產出低於經濟量
Monopoly: 可以亂調價格
Public Goods: national defense, and law enforcement, 會有 free-rider problem
External Costs and External Benefits: pollution, “painting your yard ?!”

Chapter 7 Markets in Action (Rent Ceiling and Minimum Wage)

已經平衡的勞工市場或者房地產市場，可以預設彈性為 oo, 就是少一點點或多一點點你就別想買賣

Housing Market and Rent Ceiling

San-Francisco 1906, 地震摧毀了超過半數以上的住宅。但一個月後，重新出刊的報紙卻完
全沒有提到應該很嚴重才對的住屋問題。 怎麼做的？！
住屋數，100,000 -> 44,000 LS:$16 per unit per month (ed = oo)

Supply Demand Curve Change:

a. 地震後瞬間變成 LS(long term supply 的價錢) 和 44,000
b. 因為當時市場價格$24, 所以 supply 增加（把地下室或頂樓租出去）變成 72,000 個成交
值 at $20
c. 長期下來，SS(short term supply) 的價錢還是高於 LS (long term supply), 所以建商慢慢開
始把房子蓋回 100,000 個

What would happen if a rent ceiling were imposed?

政府限定$16，平常人沒有動力把地下室清出來，於是 supply 不變
 However, 有人非常非常想要房子，想以$24 成交，於是發生以下兩種事
a. Search Activity: 多逛幾家店以尋找比較好的 bargain
會造成看到有可能房子就趕快去看看（包括如果剛好死人的房子也不放過）
結果花掉他所大部分的 consumer surplus 來找房子。精力、油錢、時間的機會成本可
能比不管制更高
b. Black Market: 市場賣$16, 可是有人願意以$24 成交 中間都是黑市的炒作利潤
Side note: rent ceiling can destroy a whole city: landlords in rent-controlled Harlem abandon entire city
blocks to rats and drug dealers

Labor Market and the Minimum Wage

當市場又發明一個省人的新機器時，supply and demand 將會如何調節？
A: short term: 人先到新的需求數量再說，於是短期內工資降的很低
Long term: 轉行的轉行，退休的退休，新的又不想進來，工資又慢慢生回原來的水準
不過數量還是沒變
What would happen if a Minimum wage were imposed?
1. Job search

Taxes
Sales Tax is usually paid by the consumer and supplier together.
Understand case for perfect elastic/inelastic demand/supply
Tax 要 tax 需求彈性小的…不然一課稅人家就不爽買…
越 elastic 或 inelastic deadweight loss 比較小

Market for Illegal Goods

1. 如果 legal 的話是這樣
2. 變 illegal, 看懲處嚴重度和執法徹底度，賣方成本上升（有形無形），買方需求下降（因為
有形無形因素），影響多少看懲處
3. 如果合法化，然後課稅呢？
甲、 效果可以 same, 需要很高的稅。也需要避免逃稅
乙、 pros: 政府有收入，收入可以再拿來治毒品
丙、 cons: 不合法 deters 許多人，拿毒品賺錢不道德

Stabilizing Farm Revenues

農產品需求 inelastic, ∴豐收反而收入減少，收成不好反而收入增加（如果沒有被毀掉的話）
穩定農產品需求有兩種方法：
Speculative Markets in Inventories
Inventory owners: 逢高賣出逢低買進，他們也要賺錢
豐收年，價格低，他們買進，於是流入市場沒那麼多;收穫不好，價格高，他們賣出
inventory 的 supply curve 是完全 elastic (價錢太低太高都不要) ∴穩定住農產品價錢
Farm Price Stabilization Policy
Set production limits: 造成價格比均衡價格高，會造成 deadweight, 多因為權力團體關說
Set Price Floor: 根 minimum wage 一樣造成 surplus, 政府需要一直買多出來的東西
 Hold inventory: 如果只是要穩定價格，民間的就有這功能 ∴代表有特殊用途？

Chapter 8 Utility and Demand (

Household Consumption Behavior Factors
Consumption possibility: //預算線 budget line
Preferences: //無異曲線 of utility
這一章還沒用到…想想他的理論架構（沒有講那麼多啦）
Utility
Total utility: 總效用，用無異曲線表達
Marginal utility: 邊際效用 ＊＊＊diminishing marginal utility: 邊際效用遞減率
Maximizing utility: 固定一個單位（dollar），把每一分錢花在 utility 最大的地方
（時間也一樣吧）-.-|||
Predictions of Marginal Utility Theory
Good 的價錢下降，購買量上升
Good 的價錢下降，替代品的購買量下降
If marginal utility declines in big steps, a small change in the quantity bought brings a big change in the marginal utility
per dollar spent. So it takes a big change in price or income to bring a small change in the quantity demanded – demand
is inelastic. Conversely, if marginal utility diminishes slowly, even a large change in the quantity bought brings a small
change in the marginal utility per dollar spent. So it takes only a small change in price or income to bring a large change
in quantity- demand is elastic

Chapter 9 Possibilities, Preferences, and Choices

Defs:
Consumption Possibility: 無異曲線 budget line
Real income: quantity of goods household can afford to buy （不是錢喔）
Relative price: 用另外一個商品的價格來定義這個價格
Marginal Rate of Substitution MRS
MRS is the 切線斜率 on the indifference curve
MRS 遞減率
Degree of Substitutability
Ordinary Goods: movie and soda
Perfect Substitutes: computer by Dell or Compaq (m=1)
Perfect Complements: 鞋子的左腳和右腳 (直角)

Predicting Consumer Behavior with 無異曲線和預算線分析法

Optimal point 有下列三種特質
1. 在預算線上 (y= M/Py – Py/Px*x)
2. 預算線為無異曲線之切線
3. MRSxy = Px/Py (Marginal rate of substitution 等於他們的相對價格) (isocline)
有辦法從無異曲線、預算線、調價前後的預算線 derive 出 demand curve
Note: Giffen’s Goods, 不太可能在真實世界發生，因為廠商一定早就停產了

Chapter 10 Organizing Production

Measuring a Firm’s Profit: Costs (Opportunity Cost)
要有概念經濟學的 cost 通常都是指機會成本
Explicit cost: things that are paid in money
Implicit cost: 不付錢，但是還是犧牲掉某些東西
Economic Depreciation: change in the market value of capital over a given period (例如車子
用一用老了)
Interest forgone: 把買機器的錢拿來存款可以有多少利息
經營者所投入的時間精力
Normal profit: The expected return for supplying entrepreneurship
Economic Profit: the return to entrepreneurial ability is greater than normal in a firm that makes a
positive economic profit (and vice versa)

The Firm’s Constraints

Technology constraints
Technology: any method of producing a good or service (經濟學的科技比較廣義)
Note: 科技可能使獲利率下降，因為增加了做某件事的機會成本（you can do much
more)
Information constraints: 我要更多資訊！！>.<~
Market constraints: 消費者願意用什麼價格買，供應商願意用什麼價格賣，還有如何企圖影
響消費者供應商意願 need resources

Technology Constraints: Technology and Economic Efficiency

Technological Efficiency: produces a given output by using the least input
Economic Efficiency: Produces a given output at least cost
Note: input = labor plus capital（機器） cost = labor * 工資 + capital * 營運成本

Information Constraints: Information and Organization of Productive Resources

Command system: 指令全部由上往下，ex the US military
Incentive system: 在公司裡面也像市場機制一樣，讓員工主動幫公司獲利
如何使用： 對於生產線，command system 很好用，因為亟需紀律
其他無法衡量成果的事情：用 incentive system
Principle Agent problem: the problem of devising compensation rules that induce an agent to act
in the best interest of a principal
解決方法
Ownership, Incentive pay (績效獎金), Long-term contracts(代表這幾年的事他都要負責)
Types of Business Organization
Proprietorship: 私人公司，老闆＝擁有人＝承擔一切 unlimited liability
Partnership: 很多人合開一家公司，跟上面 same, joint unlimited liability
Corporation: 股份有限公司，由小股東們投資。總課稅會被課兩次（公司一次，個人一次）
Market Constraints: Markets and the Competitive Environment
Market Types:
Perfect competition: 所有公司互相知道價錢 ex 全球穀物的價格
Monopolistic competition: 產品一樣，但有小小差別化，產品又像又不像 ex: Nike, Addidas,
Reebok 等的運動鞋
Oligopoly: 兩三家公司互砍 ex: Boeing and Airbus, Coke and Pepsi
Monopoly: Microsoft
Measures of Concentration:
用來判定是屬於上列的哪一種 market
Four-firm concentration ratio: 前面四家營收佔總 industry 幾個％
Herfindahl-Hirschman Index: 一個 industry 前面 50 家的市場佔有率的平方加總
Concentration 測量法的問題
Geographical scope: 一個鎮？美國？全球市場？
Barriers to entry and firm turnover: 跨入門檻的高低，如果很低，一有利潤大家殺進來
Correspondence between market and industry: 製藥業很競爭，but 製造 AIDS 藥的廠商是
Monopoly ; 一家公司可能跨很多分類 ; 公司可以轉型

為什麼要公司
Lower transactions cost: 一條龍垂直整合
Economics of scale:
Economics of scope
Economics of team production:
都是利用規模

Chapter 11 Output and Costs

Decision Time Frame:
Short run
Quantities of some resources are fixed, 只能增加 variable input,通常是員工數
Long run
長時間，例如蓋場，買新的機器 etc
sunk cost: 已經投入下去無法再收回的錢

Product Schedules and Curves

Total product, marginal product, average product of labor
D(total product)/dx = marginal product
Increasing/Diminishing marginal returns: 首先會因為分工所以 1+1＞2 再來開始管理不易等
等變成 2+1＜3
Law of diminishing returns: As a firm uses more of a variable input, with a given quantity
of fixed inputs, the marginal product of the variable input eventually diminshes

Short-run Cost
 Total cost
Includes everything, including normal profit
分成 TFC: total fixed cost TVC: total variable cost
Marginal cost: the increase in total cost that results from a one-unit increase in output
和 diminishing/increasing marginal returns 一樣道理
Average cost
Average fixed cost Average variable cost, Average total cost
TC/Q = TFC/Q + TVC/Q  ATC = AFC + AVC

Long Run Cost

Firm can vary both labor and capital
Depends on the production function, relationship between output and labor + capital
Diminishing returns
For capital: 加第二三個場沒有加第一個場有效果
For labor: 加顧第二三個人沒有加第一個人有效果

Long Run and Short Run combined

Short run graph of many different capitals: 取最低線段就是 long-run average cost curve LRAC
LRAC: the relationship between the lowest attainable average total cost and output when both the
plant size and labor are varied
Economy and Diseconomy of Scale
數學：當 LRAC 斜率為負時（LRAC 下降時）是 economy of scale
理論：有達到理想經濟規模時越做越爽…else 給我做越多，我麻煩越大
Constant return to scale: LRAC 是 horizontal
Minimum efficiency scale: 當 LRAC 第一次達到最低值時

Chapter 12 Perfect Competition

Perfect Competition 條件:
1. many firms sell identical products
2. no entry restrictions
3. established firms has no adv over new ones
4. 價格資訊對買方賣方完全流通
Perfect Competition 現象:
1. 一家公司的生產量只佔整體的一小部分
2. 消費者買哪一家產品都感覺一樣
3. 被動接受全球市場價格

note: normal profit: the return that the firm’s entrepreneur can obtain in the best alternate business
note: Individual company’s Marginal Revenue = 水平線 = demand curve (彈性無限大,因為可以輕易去
別家買) , 和整個 industry 的 supply curve and demand curve 不一樣
省思: 台灣製造業, 都是 price taker, so 誰能壓低成本誰就能獲利@@, 反正對一家公司來講造越多
under the marginal revenue 剩餘越大
Firm’s Decisions in Perfect Competition
Short Run Decision
1. whether to produce or shut down
2. if produce, produce how much
Long Run Decision
1. whether to increase or decrease it’s plant size
2. whether to leave the industry
Deciding how much to Produce
1. Comparing TC and TR
2. Comparing MC and MR(which is a 水平線)
3. 價格變動: Shuts down 價格比最小的 AVC 還小(can’t cover AVC) ie 一家公司最多損失 AFC

Output, Price, and Profit in Perfect Competition

Short Run
價格變動機制: demand 上升->價格上升-> 大家 production 被動接受,為了利潤最大化而調整
ATC vs MR = AR determines 公司賺錢還是虧錢,不過當 MC 等 MR 還是最賺錢得時候
注意 perfect competition 時各個公司,和整體產業的 supply demand curve

Long Run
**As new firms enter an industry, the price falls and the economic profit of each existing firms
decrease (有賺錢->更多公司進入->價錢下跌-> 廠商 produce 少-> profit 減少) 同理可證 for 廠
商退出競爭
Changes in Plant size
可以調整到成本最低的 plant size, which is LRAC 的最低點
Long Run Equilibrium: 當大家都在他們的 LRAC 製造時,不過不常如此,因為:科技和喜好

Changes in Taste and Advancing Technology

原本每個廠商 produce q0, need normal profit p0,當某樣東西需求下降: balances at a new price,
廠商 maximizes profit (but 在虧損狀態), long term 廠商開始調整, price 慢慢又條回 normal
profit(不虧不賺), 此時價格又是 p0, 每家廠商也 produce q0