Micro Economics

NOTES FOR MICROECONOMICS by Prof. Nicholas Economides Stern School of Business Spring 2009 procure © Nicholas Economides MICROECONOMICS is about 1. Buying decisions of the individual 2. Buying and selling decisions of the buckram 3. The determination of prices and in markets 4. The quantity, quality and variety of products 5. Profits 6. Consumers contentment in that respect are two sides in a market for a consumption candid DEMAND Created by Consumers individually fillr maximizes satisfaction (utility) ------------------------------? CONSUMPTION THEORY SUPPLY Created by firms Each firm maximizes its profits -----------------------------? PRODUCTION THEORY 1 We will first education consumption and later production. In the third part of the curriculum we will take the demand schedule from the consumption compend and the supply schedule from the production analysis and put them unitedly in a market. The price, and the quantity exchanged will be determined in the market. We will also discuss the feat and efficiency of markets. A. CONSUMPTION ANALYSIS UNDER CERTAINTY 1. Goods are products or operate that consumers or businesses desire. Examples: a book, a telephone call, redress coverage.

Goods may be directly sought after by consumers or may contribute to the production of other goods that are desired by consumers. For example a machine used in the production of cars is desirable because it is useful in the production of cars, although it has no direct value to a consumer. Bads are products or services that consumers desire less of. Examples: garbage, pollution, some telephone calls. Clearly, a good for one consumer could be a bad for another. 2. If possible, apiece consumer would consume a very large (infinite) amount of each good. But, each individual is constrained by his/her ability to pay for these goods. The demarcation of total funds available to an individual defines the 2 budget constraint. and then a consumer has to maximize his/her... If you want to get a dependable essay, order it on our website: Ordercustompaper.com

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