【文章內(nèi)容簡(jiǎn)介】 ium p QD,QS pe 100 pmax Excess demand The 100 close apartments are no longer allocated by willingnesstopay (lottery, lines, large families first?). 41 Lecture_1 Value Judgment ? Which of the following is better? ? Rent control ? Perfect petition ? Monopoly ? Discriminatory monopoly ? But, what do you mean by “better”? 42 Lecture_1 Pareto Efficiency ? Vilfredo Pareto。 18481923. ? A Pareto oute allows no “wasted welfare”。 ? . the only way one person?s welfare can be improved is to lower another person?s welfare. 43 Lecture_1 Pareto Efficiency ? A Pareto inefficient oute means there remain unrealized mutual gainstotrade. ? Any market oute that achieves all possible gainstotrade must be Pareto efficient. 44 Lecture_1 Pareto Efficiency ? Competitive equilibrium: ? all close apartment renters value them at the market price pe or more ? all others value close apartments at less than pe ? so no mutually beneficial trades remain ? so the oute is Pareto efficient. 45 Lecture_1 Pareto Efficiency ? Discriminatory Monopoly: ? assignment of apartments is the same as with the perfectly petitive market ? so the discriminatory monopoly oute is also Pareto efficient. 46 Lecture_1 Pareto Efficiency ? Monopoly: ? not all apartments are occupied ? so a distant apartment renter could be assigned a close apartment and have higher welfare without lowering anybody else?s welfare. ? so the monopoly oute is Pareto inefficient. 47 Lecture_1 Pareto Efficiency ? Rent Control: ? some close apartments are assigned to renters valuing them at below the petitive price pe ? some renters valuing a close apartment above pe don?t get close apartments ? Pareto inefficient oute. 48 Lecture_1 Further Extensions of the Model ? Over time, will ? the supply of close apartments increase? ? rent control decrease the supply of apartments? ? a monopolist supply more apartments than a petitive rental market? 49 Lecture_1 A picture of economic activities Factor market goods market Household Governments Firms 50 Lecture_1 Economic activity How will the various goods and services be produced? By hand or by robots? For whom will the various goods and services be produced? How is economic benefit distributed? That is a mechanism of allocation scarce resources, answer above three basic questions. 51 Lecture_1 Economic activity: Participants Who make decision? Decision makers fall into three groups: ?Households ?Firms ?Governments 52 Lecture_1 Economic activity: Participants Household is any group of living together as a decisionmaking unit. Household provide factors for ine to buy goods and services 53 Lecture_1 Economic activity: Participants Firm is an anization that produces goods and services. All producers are called firms, no matter how big they are or what they produce. Firm buy the factors from household , and supply goods and services to household and government. 54 Lecture_1 Economic activity: Participants Government is an anization that has two functions: (1). The provision of goods and services to households and firms. (2). The redistribution of the ine and wealth. 55 Lecture_1 Microeconomics: Definition ? Microeconomics deals with: ? Behavior of individual units ?When Consuming ? How we choose what to buy 56 Lecture_1 Microeconomics: Definition ? Microeconomics deals with: ? Behavior of individual units ?When Producing ? How we choose what to produce 57 Lecture_1 Microeconomics: Definition ? Microeconomics deals with: ? Markets: The interaction of consumers and producers 58 Lecture_1 Macroeconomics: Definition ? Macroeconomics deals with: ? Analysis of aggregate issues: ?Economic growth ?Inflation ?Unemployment 59 Lecture_1 Macroeconomics and Macroeconomics ? The Linkage Between Micro and Macroeconomics ? Microeconomics is the foundation of macroeconomic analysis 60 Lecture_1 The Themes of Microeconomics ? According to Mick Jagger* the Rolling Stones ?“You can?t always get what you want” *Economics degree from London School of Economics 61 Lecture_1 The Themes of Microeconomics ? Why Not? ? Limited Resources 62 Lecture_1 The Themes of Microeconomics ? Microeconomics ? Allocation of Scarce Resources and Tradeoffs ? In a planned economy ? In a market economy 63 Lecture_1 The Themes of Microeconomics ? Microeconomics and Optimal Tradeoffs 1. Consumer Theory 2. Workers 3. Theory of the Firm 64 Lecture_1 The Themes of Microeconomics ? Microeconomics and Prices ? The role of prices in a market economy ? How prices are determined 65 Lecture_1 Definition of Managerial Economics The application of economics theory and the tools of analysis of decision science to examine how an anization can achieve its aims or objectives most efficiently. Management: Decision making.