《微观经济学英》PPT课件

Week1:MicroeconomicsII,Topic:MicroeconomicsandApplication,Outline,EssentialMicroeconomicsPrinciplesUsesofMicroeconomicsApplication1,Subtopic1:EconomicPrinciples,EconomicisanacademicdisciplineofsocialsciencethatprovidesdiscourseabouttheallocationoflimitedresourcesineconomytoproducegoodsandservicestosatisfyunlimitedwantsEconomics,indeed,isabroaddisciplineitself.Microeconomicsandmacroeconomicsaretwoseparatedbutinterrelatedbranchesofeconomics.Therearemanymorefieldsthateachservedtofocusonaparticularareaofstudy.,Continuously,SocialScience,Economics,Microeconomics,Macroeconomics,Industrial,financial,HumanCapital,Environmental,Others,MathematicalEconomics,Econometrics,AppliedStatistics,EditedbyYong,E.L.,Continuously,MicroeconomicsFocusesonthestudyofchoiceanddecisionmakingforanindividualhouseholdandfirm,whilemacroeconomicsstudiesthebehaviouroftheeconomicasawhole.Thereisafewprinciplesaboutmicroeconomicsinsomebooks,whilemoreinothers,Continuously,Basically,thegeneralprinciplesare:ScarcityofresourcesOpportunitycostsIncreasingopportunitycostRealOpportunityCostRealOpportunitycostandinefficiency,EditedbyYong,E.L.,Continuously,0,QuantityofApple,QuantityofApplePie,a,b,c,d,6,7,12,13,10,9,6,2,EditedbyYong,E.L.,Continuously,AssumptionsinsidetheProductionpossibilityFrontier(PPF)Factorsofproductionisfixed;labourandcapitalandnotechnologydevelopmentAgentinvolvedisfirm/producerwhofaceeconomicproblemsandquestionsTheconceptofincreasingopportunityapplied.Producersarerational.Normalgood:AppleandApplepieAtaparticularprice,placeandtime(PPPT),EditedbyYong,E.L.,Continuously,Ifthefirmproduces10unitsofappleand6unitsofapplepiewantstoincreasetheproductionofapplepiebyoneunittothe7thunit.Ithastoforgo1unitofapplesothatresourcescanbeshiftedtoproducetheadditionalapplepie;OpportunityCostisthus1.,EditedbyYong,E.L.,Continuously,Ifthefirmproduces6unitsofappleand12unitsofapplepiewantstoincreasetheproductionofapplepiebyoneunittothe13thunit.Ithastoforgo2unitsofapplesothatresourcescanbeshiftedtoproducetheadditionalapplepie;OpportunityCostisthus2.,EditedbyYong,E.L.,Continuously,Thus,itisobviousthatopportunitycosthasincreasedfrom1to2unitsWhatshouldtheopportunitycostshouldbemeasuredinrealtermthaninmoneyterm?Ifitismeasuredinmoneyterm,seewhathappen:Supposeapplecosts$10perunitandapplepiecosts$20perunit.Thus,theopportunitycostremains1.Supposecostofbothgoodsdoubled,$20forappleand$40forapplepie.Thus,theopportunitycostremains1.,EditedbyYong,E.L.,Continuously,Now,askyourselfiftheproductionbythefirmefficientlyorequallyproduced?Firstly,tellwhichonedoyouthinkispossible:Efficientorequalorboth.Secondly,tellthereasonforittobeefficientorequalorboth.Thirdly,giveyourcreativepointofviewofhowsuchequalandefficientconditioncanbedisturbedorachieved.,EditedbyYong,E.L.,Continuously,1)Inthisexample,youshouldchoosetosaythatthePPFisefficient2)Inthesensethatresourcesareutilizedinmaximumamounttoproducebothgoods,asshownatpointa,b,candd.However,anypointinsidethePPFshouldnotbeefficientduetounusedresources.PointsbeyondthePPFareunreachableduetoinsufficientresources.3)Giveapointtohowthismightbedisturbed.-IfHealthMinistryimposesanewlawtoreduceapplepieduetoobesityinchildrenandincreaseappleproduction,theproducermaynotbeabletofindthebestcombinationofresourcesforthenewplanofproductionsetbythegovernment.,EditedbyYong,E.L.,Subtopic2:UsesofMicroeconomics,Microeconomicshasitsessentialapplicationineveryaspectofhumanbehaviour,whichrelatedtoscarcity,choiceanddecisionmaking,PPPT.However,itdoesntmeanthateverydecisionmakingprocessbasedoneconomicprinciplesmustberightandthebest.EX:Thefund-hedgecollapsebytwoEconomicsNobelPrizeWinner,EditedbyYong,E.L.,Continuously,Thestudyofmicroeconomicscanhelponetoconceptualizeimportantdecisionsthatconcerntooneslifeandthisishoitoffersawaytomakebetterdecision.Oneobviousapplicationofmicroeconomicsisinthebusinessfield;firmsAfirmthatwantstoenterthebiotechnologyindustry,forinstance,mustatleastknowthedegreeofdemandforbiotechnologyproductsinthemarket,theresourcesavailabletoproducetheproductsandtheopportunitycostofusingtheresourcesintheproduction.,EditedbyYong,E.L.,Continuously,Microeconomicsisalsousedforevaluatingbroadquestioninregardstogovernmentpolicy(althoughthisismoretomacroeconomics).Changesintonewlawandregulationmaycauseeconomicresourcesallocatedinefficientlyasshownatthepreviousexample.,EditedbyYong,E.L.,Subtopic3:Application,Considerthemarketforminivans.Ifpeopledecidetohavemorechildren,whatwouldhappentothepriceandquantityintheminivanmarket?ThreelevelofresponsesAssumptionsDescriptionofyouranswerYourjudgementaboutequityandefficiency,EditedbyYong,E.L.,Continuously,AssumptionFactorsinvolvedareminivanandpriceofminivansandtherearemorechildrennow;ceteriesparibus.Agentsinvolvedareminivanproducersandhouseholds,whofaceeconomicproblemsandquestions.EX;ofbasiceconomicproblems:Eachhouseholdisconstraintwithlimitedincome,thusminivanisthebestchoicecomparedtootherbettervehicles,whichnowtheopportunitycost.EX;ofbasiceconomicquestions:(What)Eachhouseholddemandsminivanformaximizingutility.(HowMuch)Eachhouseholddemandsthenumberofquantityofminivanisdeterminedbythepriceandincome.(How)Householdsmustallocateincomeefficientlytopurchaseminivan.(Forwho)Householdspurchasetheminivanfromtheminivanproducersforfamilyusage.,EditedbyYong,E.L.,Continuously,ThelawofdemandandsupplyappliedNormalgoodsRationality,EditedbyYong,E.L.,Continuously,PriceperunitofMinivan,QuantityofMinivan,S,S,D0,D,0,E0,D1,D1,E1,Q1,Q0,P1,P0,0,EditedbyYong,E.L.,Continuously,Nowaskyourselfifthisisefficientorequity.Why?