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CH 11
CH 11
2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ray Fair
Firm and Household Decisions
2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ray Fair
Partial Equilibrium Analysis
2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ray Fair
General Equilibrium
2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ray Fair
Efficiency
2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ray Fair
General Equilibrium Analysis
2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ray Fair
Cost-Saving Technological Change
2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ray Fair
A Shift in Consumer Preferences
2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ray Fair
Adjustment in an Economy
with Two Sectors
2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ray Fair
Adjustment in an Economy
with Two Sectors
A change in consumer
preferences causes an
increase in the demand
for wine, and,
consequently, a
decrease in the demand
for other goods.
2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ray Fair
Adjustment in an Economy
with Two Sectors
2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ray Fair
Adjustment in an Economy
with Two Sectors
2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ray Fair
Adjustment in an Economy
with Two Sectors
2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ray Fair
Wine Production is an
Increasing-Cost Industry
Land in Grape Production in the United States and in California Alone,
1974 and 1982
NUMBER OF VINEYARDS NUMBER OF ACRES
United States
1974 14,208 712,804
1982 24,982 874,996
Percent change +75.8 +22.8
California
1974 8,333 607,011
1982 10,481 756,720
Percent change +25.8 +24.7
Source:
Source: U.S. Department of Commerce, Bureau of the Census, Census of Agriculture (1974 and 1982), 1, part 51.
2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ray Fair
Formal Proof of a
General Competitive Equilibrium
2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ray Fair
The Efficiency of Perfect Competition
2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ray Fair
Pareto Efficiency
2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ray Fair
The Efficiency of Perfect Competition
2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ray Fair
The Efficiency of Perfect Competition
2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ray Fair
The Key Efficiency Condition: Price
Equals Marginal Cost
2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ray Fair
Efficiency in Perfect Competition
Efficiency in perfect competition follows from a weighing of values by
both households and firms.
2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ray Fair
The Sources of Market Failure
Public goods
Externalities
Imperfect information
2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ray Fair
Imperfect Markets
2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ray Fair
Imperfect Markets
2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ray Fair
Imperfect Markets
2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ray Fair
Public Goods
2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ray Fair
Public Goods
2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ray Fair
Imperfect Information
2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ray Fair