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Monthly Archives: 八月 2008
Monopoly
Marginal revenue (MR) for monopolies is very different from MR for competitive firms. For a monopoly, MR is lower than price because a monopoly faces a downward-sloping demand curve. Continue reading
The Hidden Costs of Money
现代社会的发展使得金钱的作用越来越强大且突出，人们在思考问题和解决问题的时候，首先考虑金钱的倾向性也愈加明显，年轻一代将如何看待金钱在社会中的位置，将决定着我们人类 humanity 的未来。 Continue reading
Firms in competitive Markets
For a competitive firm, the firm’s price (P) equals both its average revenue (AR) and its marginal revenue (MR). There are three general rules for profit maximization in competitive markets. Continue reading
爱心果汁
爱心果汁, originally uploaded by Appleping.
好久没有在 flickr 上闲逛了。偶然间发现这个女生的照片… Continue reading
The Cost of the Production
The distinction between explicit and implicit costs highlights an important difference between how economists and accountants analyze a business. Economic profit is an important concept because it is what motivates the firms that supply goods and services.Economic profit is an important concept because it is what motivates the firms that supply goods and services. 1. Marginal cost eventually rises with the quantity of output.
2. The ATC curve is U-shaped.
3. The MC curve crosses the ATC at the minimum of ATC.
The Design of the Tax System
In designing a tax system, policymakers have two objectives: efficiency and equity.
One tax system is more efficient than another if it raises the same amount of revenue at a smaller cost to taxpayers.Everyone agrees that the tax system should be equitable, but there is much disagreement about what equity means and how the equity of a tax system can be judged.Tax incidence–the study of who bears the burden of taxes–is central to evaluating tax equity. Continue reading
Public Goods and Common Resources
If the government decides that the total benefits of a public good exceed its costs, it can provide the public good, pay for it with tax revenue, and make everyone better off.The government can solve the problem by reducing use of the common resources through regulation or taxes. Continue reading
Externalities
The equilibrium of demand and supply fails to maximize the total benefit to society as a whole when there are negative externalities. In this case, governments can respond by trying to influence the behavior of buyers and sellers to protect the interests of bystanders. Continue reading