微观经济学英文版课件

1、MicroeconomicsYan YANChapter 1: The Fundamentals of Economics（A. Introduction）You want to buy a clock in the grocery near the campus. The price is $20. A friend tells you that it is $10 in the supermarket in downtown. Would you buy the clock in the supermarket？You want to buy a computer which is $25

2、10. while it is $2500 in the supermarket in downtown. Wherever you buy the computer, it would return to the producer if there is any problem. Where would you buy it？Chapter 1: The Fundamentals of Economics（A. Introduction）1.1 Scarcity and EfficiencyWhat is economics ?Economics is the study of how so

3、cieties use scarce resources to produce valuable commodities and distribute them among different people.What is efficiency ?Efficiency denotes the most effective use of a societys resource in satisfying peoples wants and needs. In economics, we say that an economy is producing efficiently when it ca

4、nnot make anyone economically better off without making someone else worse off.Chapter 1: The Fundamentals of Economics（A. Introduction）1.2 Microeconomics and MacroeconomicsWhat is Microeconomics ?It is concerned with the behavior of individual entities such as markets, firms and households.Founder:

5、 Adam smith, What is Macroeconomics ?It is concerned with the overall performance of the economy.Funder: John Maynard, Chapter 1: The Fundamentals of Economics（A. Introduction）1.3 The logic of economicsThe post hoc fallacy It involves the inference of causality. It occurs when we assume that, becaus

6、e one event occurs another event, the first event caused the second event. 广东省的人口死亡率为5.4，是全国最低的省份，由此我们就推定生活在广东一定有利于身体健康。Failure to hold other things constantIt refers to the failure to hold other things constant when thinking about an issue. 税率对收入的影响Fallacy of compositionWhen you assume that what is

7、 true for the part is also true for the whole, you are committing the fallacy of composition.一个农场主丰收 VS. 所有农场主都丰收Chapter 1: The Fundamentals of Economics(B. The Three problems of economic organization)There are three problems of economic organization:What commodities are produced and in what quantit

8、ies?How are goods produced?For whom are goods produced?There are three types of economies:Market economyCommand economyMixed economyChapter 1: The Fundamentals of Economics(C. Societys technological possibilities)1.4 inputs and outputsInputs are commodities or services that are used to produce goods

9、 and services.Outputs are the various useful goods or services that result from the production process and are either consumed or employed in further production. 饺子的投入与产出：投入：面粉、肉、蔬菜、调味品、包饺子的技术、擀面杖产出：饺子Chapter 1: The Fundamentals of Economics(C. Societys technological possibilities)Factors of product

10、ion: Another name for inputsIt can be classified into three board categories: land, labor and capitalLand( natural resource): represents the gift of nature to our productive process.Labor: consists of the human time spent in productionworking in automobile factories, tiling the land, teaching school

11、, or baking pizzas.Capital resource from the durable goods of an economy, produced in order to produce yet other goods. 建造房子需要什么生产要素？Chapter 1: The Fundamentals of Economics(C. Societys technological possibilities)1.5 The Production-Possibility FrontierSuppose the income is fixed, we can choose to p

12、roduce gun or butter.(shown in the chart)PossibilityButterGunsA015B114C212D39E45F50Chapter 1: The Fundamentals of Economics(C. Societys technological possibilities)Chapter 1: The Fundamentals of Economics(C. Societys technological possibilities)Chapter 1: The Fundamentals of Economics(C. Societys te

13、chnological possibilities)Chapter 1: The Fundamentals of Economics(C. Societys technological possibilities)1.6 Opportunity costThe cost of the forgone alternative is the opportunity cost of the decision.How to calculate opportunity cost?Suppose the country decide to increase its gun purchase from 90

14、00 guns at D to 12000 units at C, what is the opportunity cost of the decision?1 million butter. Chapter 1: The Fundamentals of Economics Exercise & DiscussionAssume that Econoland produces haircuts and shirts with inputs of labor. Econoland has 1000 hours of labor available. A haircut requires hour

15、 of labor, while a shirts requires 5 hours of labor. Construct Econolands production-possibility frontier. Chapter 1: The Fundamentals of EconomicsConsider the following problem: after your 8hours a day of sleep, you have 16 hours a day to deliver between leisure and study. Let leisure hours be the

16、X variable and study hours be the Y variable:1) plot the straight-line relationship between all combinations of X and Y on a blank piece of graph paper.2)let us say that you absolutely need 6 hours of leisure per day, no more, no less. On the graph, mark the point that corresponds to 6hours of leisu

17、re.3) now consider a movement along the curve: assume that you decide that you need only 4 hours of leisure a day. Plot the new point. Chapter 2：Markets and Government in a Modern Economy Imagine what process does meat experience ?What is market ?It is a mechanism through which buyers and sellers in

18、teract to determine prices and exchange goods and services.Price = DemandPrice DemandPrice AVCMINB. MC=P, PAFCMINC. RevenueMAXD.AVCMINAnswer: AChapter 8: Analysis of Perfectly Competitive Markets4. Suppose at certain quantity, firm has minimum average cost, that means:A. MC=ACB. firm has the most pr

19、ofitC. firm has the least profitD. firm has extra profit that is more than 0Answer: AChapter 8: Analysis of Perfectly Competitive Markets5. In perfectly competitive market, the condition for equilibrium for firm in short run is:A. P=ARB. P=MRC. P=MCD. P=ACAnswer: CChapter 8: Analysis of Perfectly Co

20、mpetitive MarketsIn a perfect competitive market, suppose a firms cost function in short run is STC=0.1Q3-2Q2+15Q+10,please find:1) quantity and profit in short run when the price is $55;2) what is the price when the firm should shutdown;3)supply function of this firm in short run.Chapter 8: Analysi

21、s of Perfectly Competitive Markets1) SMC=0.3Q2-4Q+15According to the Rules for a firms under perfect competition=MC=55So, 0.3Q2-4Q+15=55, Q=202) AVC=0.1Q2-2Q+15dAVC/dQ=0,that is 0.2Q-2=0,so Q=10P=AVC=5Chapter 8: Analysis of Perfectly Competitive Markets3) when there is maxmum proofit, P=MCso, 0.3Q2-

22、4Q+15=PQ=416-1.2(15-P)1/2/0.6Q=4+(1.2P-2)1/2/0.6 when P5 or P=5Q=0 when PMC, additional unit of output provides more revenue than its costs, the firms profit will increaseWhen MR2Bundling products are complements, substitutes and non-related goods.Chapter10： Oligopoly and Monopolistic CompetitionExe

23、rcise 1Suppose you are a supplier in the imperfect market and you are thinking of how to price the goods that you produced. The marginal cost is $200, and the demand curve is P=1000-2Q.1)if you are making the fixed price, what is the quantity and price that you are going to choose? What are the tota

24、l revenue and profit?2)if you take price discrimination for customers, that is to say, you charge $600 and $400 for different customers. What are the quantities under the two prices? What are the total revenue and profit?3)compare the results of question 1and question 2, which one is better?4) under

25、 price discrimination, is the consumer surplus raised or decreased? Please plot curves to show your point. Chapter10： Oligopoly and Monopolistic CompetitionExercise 2Suppose the demand function is P=200-2Q, supply function is P=2Q.1) if the market is perfect competition market, that means demand and

26、 supply are decided by the market. Please calculate the consumer surplus and producer surplus.2) if the market is imperfect competition market, that means price discrimination will be taken. Under first degree price discrimination, what will be the output of this supplier? Please Please calculate th

27、e consumer surplus and producer surplus. And plot the curve to show your point. Chapter10： Oligopoly and Monopolistic CompetitionExercise 3Suppose there is only one airline company in city A. if the price of flight tickets is $300, 500 tickets will be sold. If the price is $150, 200 more tickets wil

28、l be sold. The marginal cost for each ticket is $100.1) if the ticket is fixed for all customer, the price will be( ), the quantity will be ( ),the profit will be ( )2) If price discrimination is allowed to be taken. The most profit for this company is ( )3) under price discrimination, the profit wi

29、ll be ( ), the consumer surplus will be ( )A. increased; increasedB. increased; decreasedC. decreased; increasedD. decreased; decreasedChapter10： Oligopoly and Monopolistic CompetitionExerciseFor a monopoly firm, demand function is given as Q=100-0.5P, MC=40, if this firm takes first degree price di

30、scrimination, please calculate the marginal revenue when profit is maximum.Chapter 11：Uncertainty and Game Theory11.1 Economic risk and uncertaintySuppose you are trying to explore gold, there are uncertainties like:Cost MachineLaborProfitChapter 11：Uncertainty and Game TheorySpeculationIt involves

31、buying and selling in order to make profits from fluctuations in price. A speculator wants to buy low and sell highIs speculation beneficial to the society?Speculators can move goods from periods of abundance to period of scarcity. They do this by buying when goods are abundant and prices are low an

32、d selling when goods are scarce and price are high, and this indeed can improve a markets efficiency.Chapter 11：Uncertainty and Game TheoryCorn harvest once a year in autumn，how speculator affect the price of corn?A well-informed corn speculator realizes that if all the corn is thrown on the market

33、after the autumn harvest, it will fetch a very low price because there will be a glut on the market. Several months later, when corn is running short, the price will tend to skyrocket. In this case, speculator can make a profit by1) purchasing some of the autumn crop while it is cheap2) putting it i

34、nto storage3)selling it later when the price has risenAs a result, the autumn price increases, the spring supply of corn increases, and the spring price declines. Chapter 11：Uncertainty and Game TheoryIs speculator increase the public interest?Is period of abundance stands for low marginal utility o

35、r high marginal utility?Speculation is buying where the price and marginal utility of the good are low and selling where the price and marginal utility are high.Chapter 11：Uncertainty and Game TheoryRisk and uncertaintyA person is risk-averse when the displeasure from losing a given amount of income

36、 is greater than the pleasure from gaining the same amount of income.Please find whether you are risk-averse or not through the questionnaire.Moral hazardIt is at work when insurance increases risky behavior and there by changes the probability of loss.Chapter 11：Uncertainty and Game TheoryMoral haz

37、ard in application医疗保险是否应该涵盖美容整形？保险公司是否会为学生提供“成绩保险”？Adverse selectionSuppose insurance company divides people into two kinds: healthy and unhealthy. It claims social insurance$2000 per year for healthy people, and $8000 per year for unhealthy people. On average, people should pay $5000 per year. Cha

38、pter 11：Uncertainty and Game TheoryFor those who are healthy, $5000 per year is too expensive. As a result, healthy people would not buy this social insurance. While as for those who are unhealthy, $5000 per year is a real bargain. As a result, unhealthy people would buy this insurance. Finally, ins

39、urance company would lose when most customers are unhealthy. So it will increase the price of insurance. ExerciseP222. 2Chapter 11：Uncertainty and Game Theory11.2 Game theoryGame theory analyzes the way that two or more players choose strategies that jointly affect each other.You are the head of an

40、established firm, A, whose motto is “we will not be undersold”. You open your browser and discover that nEwBooks, an upstart internet bookseller has an advertisement that says “we sell for 10% less”. What would be the result?Chapter 11：Uncertainty and Game TheoryChapter 11：Uncertainty and Game Theor

41、yPayoff table refers to the interaction between two firms or people A payoff table is a means of showing the strategies and the payoffs of a game between two players. Dominant strategy arises when one player has a single best strategy no mater what strategy the other player follows.When both players

42、 have a dominant strategy, we say that the outcome is dominant equilibrium.Chapter 11：Uncertainty and Game TheoryExplain what A meansExplain what C means and whyPlease find what is the dominant strategy for AmazingPlease find whether nEwBooks have dominant strategyWhat is the possible strategy for b

43、oth of them?Chapter 11：Uncertainty and Game TheoryA Nash equilibrium is a solution in which no player can improve his or her payoff given the other players strategy. In other words, each players strategy is a best response against the there players strategy.纳什均衡是一个在其他博弈者的战略给定时，没有一方还能改善自己的获利的状况。也就是说，

44、在博弈者A的战略已定时，另一个对手不可能做的更好，反之亦然，每一种战略都是针对其对手战略的最佳反应。Chapter 11：Uncertainty and Game Theory11.3 The prisoners dilemmaPrisoners Molly and Knuckles, who are partners in crime. The district attorney interviews each separately, saying “I have enough on both of you to send you to jail for a year. But Ill make a deal with you: if you alone confess, you will get off with a 3-month sentence, while your partner will serve 10 years. If you both confess, you will both get 5 years.”Chapter 11：Uncertainty and Game TheoryChapter 11：Uncertainty and Game Theory11.4 智猪博弈猪圈里