Summary
ECO2003F- Microeconomics 11 summary notes
- Course
- Institution
SUMMARY OF Unit 5, unit 19, chapter 9, unit 12, unit 21 and detailed summary of all types of bargaining examples. Second-year first-semester microeconomics notes.
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-units Unit/9
long run production function
I
institutions ↳ both inputs
production
are varible
Q
↳ introduce
B bargaining Costs isoquants L
Marginal rate of technical substitution :
how much
of one
MRS
howmuchof unitisaperson as
:
will
input can
you change for another while
keeping
types
output the same
·
indifference curve : shows
production
of inequality :
·
categorical I
males females
->
marginal utility -
,
MRT how ofI unit is actually
Integrational (inherited) between generations
·
,
given
:
much up ↳
·
feasability frontier Shows:
Utility of outcome inversly related to intergrational Returns to scale :
mobility -
Integenerational elasticity :
the % difference
proportional increase in all inputs leads to a more than
institutions : Written & unwritten rules (as well in the second
generations status associated proportional increase in output (as the firm gets bigger
aslawsofagame that
regulate With a 1 % difference in the adults it gets cheaper to maintain)
generations Status -
·
joint projects (distribution of
economic rents) Endowments :
facts about individuals that
may proportional increase in all inputs leads to an equally
not institutions affect their income
organisations are
proportional increase in output
·
parato efficient
Wah Vautoassetsownedby householad a ses
:
outcome :
someonemustbenefit
I
(net their debts)
Someone else
and investments proportional increase in all inputs leads to a less
·
MRS = MRT
than proportional increase in output (as the firm
Disposable income : market income minus gets bigger it gets more expensive to maintain)
taxes & transfers
D Decreasing returns to scale is a long run concept which
Di <Mi <W =
unequal talks about how an increase in every factor affects total
production.
DMR is a short run concept which focuses on how output
·
changes due to an increase in a specific input factor.
* Gini coefficient =
area ofA
B
biological survival constraint feasible
-
Shows the outcomes
limited
by survival
exerted more
energy
·
=
food consumed A
B
technically feasible allocations : all combinations that d
are possible with in the
technology
&
limit of
Es
satisfaction from additional 0
Marginal Utility :
consuming an =
perfect equality ; 1= max
inequality E
unit
of product can instance
·
of free time=du/dt Addressing inequality :
LG
·
of grain-du/d quasilinear -
Predistribution
increasing opportunities
to
preferences change outcomes
-
affects opportunitys
utility
total :
total satisfaction (add all to increase incomes
utility up to that
-> e
g improvement in public education
point
.
,
pareto superior outcome :
leaves one person
better off and no
person worse off ↳
affects incomes
directly
Coercion = person takes full surplus and is on biological constraint IC
the poor
.
Voluntary exchange = halved and shared surplus & on reservation indifference
whether u get petroleum from BP or
Voluntary exchange & bargaining power (take-it-or-leave-it) = captures full
Policies needed to Engen you’ll still be able to drive the
surplus & on reservation indifference curve overcome
inequality :
same distance
·
taxes
·
Expenditure action of spending funds
Costs
·
level of distribution
TCa FC = ro
VC wh rk wL
Chapter 9
·
= + + =
+
⑧
⑧
⑧
Production l The TC curve is exactly the VC curve translated up by the
short run production function 0 =F(k, ( :
magnitude of our FC.
↳ capital is fixed
↳ must pass
throug the origin" Legrangian
L
Marginal product "Tinput:
,
additional output created as a constraint production
constraint
result of additional input cost
Ederiv TP (Optimising) -
2 (constraint)
of
minimise cost
Average product TP/input (P)
:
,
slope of the
ray from maximise production
the
origin
NB! the Steeper the1C the more
Mp> Ap , Apr
she values free time MP<AP , AP L
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