Microeconomics: Marginal optimization
Consumer surplus under single pricing vs price discrimination (6/23/2006)
Positive consumer surplus under single pricing vs zero consumer surplus under perfect price discrimination.
Positive consumer surplus under single pricing vs zero consumer surplus under perfect price discrimination.
From AFC and AVC to TC (6/23/2006)
Average total cost can be derived from adding AFC and AVC together or directly from total cost.
Average total cost can be derived from adding AFC and AVC together or directly from total cost.
From production function to cost function (6/23/2006)
Derive the total variable cost from the total product curve using Flash animation.
Derive the total variable cost from the total product curve using Flash animation.
Fund Raising at the Margin (9/22/2006)
The MR = MC profit maximization rule could be applied to fund raising.
The MR = MC profit maximization rule could be applied to fund raising.
Generating TR and MR for single-pricing searcher (9/19/2006)
Total revenue and marginal revenue can be derived from linear demand curve under single pricing for the price searcher.
Total revenue and marginal revenue can be derived from linear demand curve under single pricing for the price searcher.
Law of Diminishing Returns - flash (9/23/2006)
The law of diminishing returns can be represented by a S-shaped production curve in the short run.
The law of diminishing returns can be represented by a S-shaped production curve in the short run.
Marginal Revenue of Perfect Price Discriminators (11/17/2007)
The marginal revenue of perfect price discriminators is equal to price.
The marginal revenue of perfect price discriminators is equal to price.
Marginal revenue under single pricing vs price discrimination (6/23/2006)
Generate and compare marginal revenue under single pricing vs perfect price discrimination.
Generate and compare marginal revenue under single pricing vs perfect price discrimination.
Marginal Revenue under Single-pricing - Price Searchers vs Price Takers (11/17/2007)
Single pricing leads to P = MR under price taking or P > MR under price searching.
Single pricing leads to P = MR under price taking or P > MR under price searching.
Maximization and Optimization at the Margin (7/7/2006)
Optimizing at the margin can bring about static economic efficiency.
Optimizing at the margin can bring about static economic efficiency.
Measure Profit with P and ATC – No Profit for Single-pricing Searcher (9/23/2006)
Measure profit with P and ATC – No profit for single-pricing searcher.
Measure profit with P and ATC – No profit for single-pricing searcher.
Measure Profit with P and ATC – Positive Profit for Single-pricing Searcher (9/23/2006)
Measure profit with P and ATC - positive profit for price searcher.
Measure profit with P and ATC - positive profit for price searcher.
Meaure profit with P and ATC - positive profit for price taker (9/23/2006)
Profit for price taker can be measured by comparing price and average total cost.
Profit for price taker can be measured by comparing price and average total cost.
Price Searchers, Price Discriminators, and Price Takers (9/19/2006)
The uniqueness of products affects the pricing power of sellers.
The uniqueness of products affects the pricing power of sellers.
Pricing and economic surplus (7/7/2006)
Pricing affects how economic surplus is distributed between consumers and producers and thus the incentive and resources to come up with innovative products.
Pricing affects how economic surplus is distributed between consumers and producers and thus the incentive and resources to come up with innovative products.
Profit Maximization - Total vs Marginal (11/17/2007)
Profit maximization can be characterized with reference to the total revenue and total cost curves or the marginal revenue and marginal cost curves
Profit maximization can be characterized with reference to the total revenue and total cost curves or the marginal revenue and marginal cost curves
Profit maximization for single-pricing searcher (6/23/2006)
Compare profit-maximizing conditions using total revenue and total cost curves with those using marginal revenue and marginal cost curves for single-pricing searchers.
Compare profit-maximizing conditions using total revenue and total cost curves with those using marginal revenue and marginal cost curves for single-pricing searchers.
Profit maximization for single-pricing searcher (notes) (3/27/2007)
Notes on profit maximization for single-pricing searcher
Notes on profit maximization for single-pricing searcher
Profit maximization for the price taker (notes) (3/27/2007)
Notes on profit maximization for price takers.
Notes on profit maximization for price takers.
Profit maximization under single pricing vs price discrimination (6/23/2006)
Output is higher and profit is higher under perfect price discrimination vs single pricing.
Output is higher and profit is higher under perfect price discrimination vs single pricing.
Short-run supply curve for price taker (9/23/2006)
Short-run supply curve for the price taker is its marginal cost curve above the shut-down point.
Short-run supply curve for the price taker is its marginal cost curve above the shut-down point.
Surplus under Single-pricing vs Price Discrimination (9/23/2006)
Comparing economic surplus under single pricing vs price discrimination.
Comparing economic surplus under single pricing vs price discrimination.
Surplus under Single-pricing vs Price Discrimination (notes) (3/27/2007)
Notes on surplus under single pricing vs price discrimination.
Notes on surplus under single pricing vs price discrimination.
The Tyranny of Small Decisions (8/13/1999)
Decisions that are small in size, time perspective, and in relation to their cumulative effect may lead to suboptimal resource allocation.
Decisions that are small in size, time perspective, and in relation to their cumulative effect may lead to suboptimal resource allocation.
Total revenue and total cost of the price taker (9/19/2006)
Total revenue and total cost of the price taker when the firm's demand curve is horizontal.
Total revenue and total cost of the price taker when the firm's demand curve is horizontal.
