Living Economics

Living Economics Table of Contents Opus1 Flash Econ Ulogistics

Sample TOC

Opportunity Costs

A Matter of Opportunities

Opportunities Pay

The Case for Sweatshops

Why Do Immigrants Own Inner-City Stores?

Windfall Profit

Identifying comparative advantage

Generating combined production possibility curve

Higher output under partial specialization

What Price Means and Does

Price Signals as Guides for Resource Allocation

Supply and demand - flash

Demand elasticity and total revenue - flash

Is a Fine a Price?

Should parking be free? - flash

Excess Demand Blues - Scalpers profit from ticket shortage

Underground Sins

There Are no Widgets - Types of Goods

Rivalry and Excludability in Goods

Private Goods vs. Public Goods - flash

Drinking Experience

Streaming Revenues

Systems Competition and Network Effects

Roemer's Law of Demand

Complements and Substitutes - flash

More Money, More Options

Self-Competition

Production Costs

A Matter of Costs

Law of Diminishing Returns - flash

Cost curves under increasing and diminishing returns

From production function to cost function

Generating MC from TVC

Generating AVC from TVC

Generating AFC from TFC

Generating ATC from TC

From AFC and AVC to TC

Untangling Marginal vs Average Value

Single-pricing Searchers

Maximization and Optimization at the Margin

Price Searchers, Price Discriminators, and Price Takers

Generating TR and MR for single-pricing searcher

Profit maximization for single-pricing searcher

Measure Profit with P and ATC – Positive Profit for Single-pricing Searcher

Profit and Output when P = MC for Single-pricing Searcher

Measure Profit with P and ATC – No Profit for Single-pricing Searcher

Fund Raising at the Margin

Price discriminators

Total revenue under single pricing vs price discrimination

Marginal revenue under single pricing vs price discrimination

Profit maximization under single pricing vs price discrimination

Surplus under Single-pricing vs Price Discrimination

Profit maximization under high fixed cost – single pricing vs price discrimination

Flexible Pricing

Total revenue and total cost of the price taker

Profit maximization for the price taker

Short-run supply curve for price taker

Firm vs industry output under free entry

Noodle Price-hike Conspiracy

Market Structure and Pricing Strategy

Market structure taxonomy

Pricing and economic surplus

How Much Is Anything Worth?

Flexible Pricing

Captive Customers

Capping the Sky

Noodle Price-hike Conspiracy

Virtual Scalping

Why Are Plane Tickets Nontransferable?

Market Structure and Competitive Strategy

Competitive Strategy

From Brands to Generics - No Monopoly, No Competition

Battles of Standards

Systems Competition and Network Effects

Extreme Image Makeover

Beating the Pirates to the Punch Bowl

Loss-leader Economy

Niche Competition

Shadow Branding

Property Rights and Externality

Property Rights and Externality

Spillovers Are Not Always Externalities

External Benefit and External Cost - flash

Tragedy of the commons - flash

Licensing Textbooks

Making Animal Conservation Pay

Owners, Keepers?

Patently Deadly

Right Makes Might

Market Intervention and Regulation

Market Intervention and Regulation

Licensed to Kill?

Too Much Vitamin C?

What Makes Rights?

Strange Bedfellows!

Regulation vs price discrimination under natural monopoly

Byrding for Profit

Milked to Order

The Trustbusters' New Tools

Yellow Cabs, Red Tape

Income Distribution

Income Distribution

Glamour vs Hardship

The Economics of Superstars

Income Lotteries

Global Labor Market

The Truncated Job Ladder

Choose Your Parents Carefully

The Insecurity of Job Security

The Seduction of Cheap Labor

The Truncated Job Ladder

The Market Role of Information

Choice Paralysis

Lemon Laundering

May the Best Brand Win!

Games people play

Games Are Serious and Ubiquitous

Games people play - flash

Tipping the Scales

Aborting White Flight

6.3 Brides for Seven Brothers

Insurance at Risk

Joint Liability as Loan Collateral

Lemon Laundering

The Blind Leading the Blind

Tastes and Preferences

Advantage vs Behavior

Unsinkable Sunk Cost

Doing It Now or Later

Life by default

The Evolution of Defectors and Cooperators

Trust and Betrayal

The Origin of Predictable Behavior

Happiness - Absolute or Relative?

Statistical Victims

Free-market Solutions

Free-Market Solutions

Dying for Money?

Guilt-free Pollution

Making Animal Conservation Pay

Congestion Pricing

The Right to Pollute?

7. Price takers

7.1

Total revenue and total cost of the price taker
Total revenue and total cost of the price taker when the firm's demand curve is horizontal.

7.2

Profit maximization for the price taker
Generate marginal revenue curve (MR) from total revenue curve (TR) and marginal cost curve (MC) from total variable cost (TVC) and locate maximum profit output with MR and MC using Flash animation.

7.3

Short-run supply curve for price taker
Short-run supply curve for the price taker is its marginal cost curve above the shut-down point.

7.4

Firm vs industry output under free entry
Excessive entry under perfect competition reduces firm profit and firm output.

7.5

Noodle Price-hike Conspiracy
Price hike is difficult to sustain in commodity business with many competitors.