经济学专业英语教程第四版

《经济学专业英语教程（第四版）》

INTRODUCTION1.Framework2.Contents1.FRAMEWORK14units,andeachunitincludesonetextandoneadditionaltextUnits1-6concernmicroeconomics,andUnits7-14concernmacroeconomics2.CONTENTSUnit1Text:WhatIsEconomics?（什么是经济学？）AdditionalText:TheEconomicProblem（经济学的问题）

Unit2

Text:DemandandSupply（需求与供给）AdditionalText:UtilityandConsumerChoice（效用与消费者选择）Unit3

Text:PriceElasticitiesofDemandandSupply（需求与供给的价格弹性）

AdditionalText:TheFactorsInfluencingthePrice

ElasticitiesofDemandandSupply（影响需求与供给价格弹性的因素）Unit4Text:CostofProduction（生产成本）AdditionalText:EconomiesandDiseconomiesofScale（规模经济与规模不经济）Unit5

Text:Monopoly（垄断）

AdditionalText:PerfectCompetition（完全竞争）Unit6

Text:Oligopoly（寡头垄断）AdditionalText:MonopolisticCompetition（垄断竞争）Unit7Text:GrossDomesticProduct（国内生产总值）AdditionalText:TwoAlternativeApproachesofMeasuringGDP（衡量国内生产总值的两种可供选择的方法）Unit8Text:EconomicGrowth（经济增长）AdditionalText:SourcesofEconomicDevelopment（经济发展的源泉）Unit9Text:Inflation（通货膨胀）AdditionalText:Unemployment（失业）Unit10Text:MoneyandBanking（货币与银行）AdditionalText:TheU.S.CentralBank:TheFederalReserveSystem（美国的中央银行：联邦储备制度）

Unit11Text:ForeignExchangeandExchangeRate（外汇与汇率）

AdditionalText:TheEffectsofExchangeRatesontheEconomy（汇率对经济的影响）

Unit12Text:TheBalanceofPayments（国际收支）AdditionalText:InternationalMonetarySystems（国际货币体系）

Unit13Text:FiscalandMonetaryPolicy（财政政策与货币政策）AdditionalText:LagsintheEconomy’sResponsetoMonetary

andFiscalPolicy（经济对财政与货币政策的反应滞后）Unit14Text:RoleofGovernmentintheEconomy（政府在经济中的作用）

AdditionalText:Government’sPoliciesTowardExternalities（政府针对外部性的政策）

UnitOne

Text:WhatIsEconomics?

（什么是经济学？）1.Keywords2.Definitionofeconomics3.Economicsisascience4.Importanceofeconomics5.Economicsystem6.TranslatethefollowingintoChinese7.Questions1.KEYWORDSdecision-makingmaterialwell-beingincessantchangelaboratoryspecimensvaluejudgmentavailabilityofjobssatisfyone’swantseconomicinstitutionsframeworkoforganizationwelfarestatestandardoflivingstabilityofprices2.DEFINITIONOFECONOMICS2.1Economicsisthestudyofmankindintheordinarybusinessoflife;itexaminesthatpartofindividualandsocialactionwhichismostcloselyconnectedwiththeattainmentandwiththeuseofthematerialrequisitesofwell-being.2.2Economicshasalsobeendefinedasthestudyofdecision-making;decisionswhichinvolvechoosingbetweenalternativesintherelatedactivitiesofearning,spending,producingandconsuming,allwiththeobjectofachievingmaterialwell-being.3.ECONOMICSISASCIENCEEconomicsisoftenthoughtofasascience.However,itisaveryinexactsciencebecauseitisasocialscience,andisaffectedbythemanyinfluencesthatleadtoincessantchange.4.IMPORTANCEOFECONOMICSAknowledgeofeconomicswillallowustoanalyzeandassessthevaluesofpoliciesanddecisionsmadebypoliticians.Anditwillhelpustobecomemoreawareofthecurrentandfutureproblemsofoursocietyandthereforebetterabletocopewiththem.5.ECONOMICSYSTEM5.1Aneconomicsystemismadeupofthecollectionofrelationships,customs,institutions,lawsandarrangementsthatarecombinedtosatisfytheeconomicwantsofthecommunity—todeterminewhatandhowproductiontakesplace,andwhoreceivestheoutput.5.2Theeconomicsystemofasocietydoesgrowor,rather,develop,becausethetypeofsystemacountryhasdependedonitshistoricalbackgroundanditspoliticalforces.5.3Thewayitdoesthisdependslargelyonthetypeofsociety.IntheUSAthereisstillabeliefinthevalueoffreeenterpriseandtheabilityofindividualstosucceediftheyworkhardenough.Insomecountries,suchasEnglandandpossiblySweden,thereisabeliefinthewelfarestate,thatitisuptothegovernmenttolookafterthecitizensfromthecradletothegrave,althoughtherehavebeencriticismsofthisapproachbecauseofcost.CountrieslikeAustraliaseemtorepresentamixtureofboththeseattitudes.5.4Nationalcharacteristicsandbeliefsystemshaveledtomanydifferencesbetweeneconomicsystems.6.TRANSLATETHEFOLLOWINGINTOCHINESE(1)Economicsisthestudyofmankindintheordinarybusinessoflife;itexaminesthatpartofindividualandsocialactionwhichismostcloselyconnectedwiththeattainmentandwiththeuseofthematerialrequisitesofwell-being.(2)Evenourownpersonaldecisionsareoftenaffectedbythestateoftheeconomy,sowecouldmakebetterchoicesifweunderstoodthewaytheeconomyoperates.(3)Theprinciplesandmotivesfromwhichpeopleactarenotnecessarilyeconomicinorigin,andareoftenbasedonnon-economicvalues.(4)Aneconomicsystemismadeupofthecollectionofrelationships,customs,institutions,lawsandarrangementsthatarecombinedtosatisfytheeconomicwantsofthecommunity—todeterminewhatandhowproductiontakesplace,andwhoreceivestheoutput.7.QUESTIONS(1)Whatisthedefinitionofeconomics?(2)Whatarethemainconcernsofeconomists?(3)Whyshouldwelearnthebasiceconomictheory?(4)Whatareeconomicgoodsandservices?(5)Whatinfluencesthetypeofeconomicsysteminacountry?(6)WhattypeofeconomicsystemoperatesinChina?UnitTwo

Text:DemandandSupply（需求与供给）1.Keywords2.Howarepricesdetermined?3.Demandschedulesandcurves4.Supplyschedulesandcurves5.Changesindemand6.Changesinsupply7.TranslatethefollowingintoChinese8.Questions1.KEYWORDSfreeenterprisepricemechanismmakeaprofiteffectivedemandlawofdemandlawofsupplydemandscheduledemandcurveverticalaxishorizontalaxissupplyschedulesupplycurvemarketmechanismequilibriumpricerelatedgoodsconsumertastesFutureexpectationschangesindemandchangesinsupply2.HOWAREPRICESDETERMINED?2.1Pricemechanism2.2Demandandeffectivedemand2.3Lawofdemandandlawofsupply2.1PRICEMECHANISMIfaneconomyrunsonthelinesofthepurelycompetitivemarketoffreeenterprise,thenwhatisproducedandthepricesatwhichtheproductsaresolddependuponthechoicesanddecisionsmadebyconsumersandproducers.Thepricemechanismistheprocessbywhichpricesriseandfallasaresultofchangesindemandandsupply,andtherebyactsasasignaltoproducerstoguidethemontheirproductionplans.Ifoureconomywereentirelycompetitiveandtherewerenorestrictionsatall,thenthemarketforces,orpricemechanism,wouldoperatefreely.Theonlythingsthatwouldbeproducedwouldbethosegoodsforwhichconsumerswerewillingtopaysufficienttomakeitworthwhilefortheproducerstoputthemonthemarket.Thedemandforaproductandthepriceatwhichitcanbesoldindicatetotheproducerthebestwaytoallocateresourcesinordertomakeaprofit.2.2DEMANDANDEFFECTIVEDEMANDDemandmeansthequantitywhichbuyersarewillingtopurchaseatagivenpriceoveragivenperiodoftime.Effectivedemandmeansadesiretoobtainanarticleaccompaniedbytheabilityandwillingnesstopayforitatthepriceasked.Ineconomics,whenwespeakofdemand,weareusuallyreferringtoeffectivedemand.2.3LAWOFDEMANDANDLAWOFSUPPLYLawofdemandBuyersarelikelytobuymoreofanitemasthepricefalls.LawofsupplyAspricesrise,sellerswouldliketosellmoreandwill,ifitispossible,offeralargerquantityforsale.3.DEMANDSCHEDULESANDCURVES3.1Demandschedules3.2Demandcurves3.1DEMANDSCHEDULESPrice(cents/kg)Quantitydemanded(kg)Price(cents/kg)Quantitydemanded(kg)107050302060602030507010404080Nil3.2DEMANDCURVESThepriceisshownontheverticalaxis,whilequantityisshownonthehorizontalaxis.Thisistheconventionalwayofdrawingademandandsupplygraph.Aspricesfall,alargerquantityofagoodisdemanded.Thetypicaldemandcurveslopesdownfromlefttoright.Thisindicatesthatconsumersbuymoreofagoodatlowerpricesandlessathigherprices,butatverylowpricesdemanddoesnotnecessarilyincrease.Thisissometimescalledanexpansionorcontraction,oramovementalongthecurve.4.SUPPLYSCHEDULESANDCURVES4.1Supplyschedules4.2Supplycurves4.3Equilibriumprice4.1SUPPLYSCHEDULESPrice(cents/kg)Quantitysupplied(kg)Price(cents/kg)Quantitysupplied(kg)8010040607090305060802040507010304.2SUPPLYCURVESAspricesrise,alargerquantityofagoodissuppliedorsold.Thetypicalsupplycurveslopesdownfromrighttoleft.Thisindicatesthatsuppliersorsellerssupplyorsellmoreofagoodathigherpricesandlessatlowerprices.Thisiscalledamovementalongthecurve.4.3EQUILIBRIUMPRICEAcompromisebetweenhowmuchandatwhatpricethesellerdecidestosellandtheconsumers’planstobuymustbearrivedat.Thisiscalledtheequilibriumpriceandisthepriceatwhichthebuyerispreparedtobuythequantitywhichthesellerispreparedtosellatthatprice,sothatthemarketisclearedandthereisnosurplusandnoshortage.5.CHANGESINDEMAND5.1Influenceswhichcanchangedemandforgoodsandservices5.2Changesindemand5.1INFLUENCESWHICHCANCHANGEDEMANDFORGOODSANDSERVICESPricereceivedfortheitemPricesofrelatedgoodsChangesinconsumertastesPricesofallothergoodsandservicesTheincomeoftheconsumerFutureexpectations5.2CHANGESINDEMANDDemandchangessimplybecausepriceischanging,butnoneoftheotherfactorswhichaffecttheconsumersbuyinghavechanged.Achangeinthepriceofagoodresultsinamovementalonganexistingdemandcurve.Pricehasremainedunchangedbuttherehasbeenachangeindemandcausedbyfactorsotherthanprice.Thedemandcurvecouldshifttotheleftorrightifthereisachangeinanyoftheseconditionsotherthanprice,influencingpeopletobuylessormoreofacommodityevenifthepriceremainsunchanged.6.CHANGESINSUPPLY6.1Influenceswhichcanchangesupplyforgoodsandservices6.2Changesinsupply6.1INFLUENCESWHICHCANCHANGESUPPLYFORGOODSANDSERVICESThepricereceivedfortheitemThecostofproducingtheitemTaxesimposedwhichraisetheitem’smarketpricetoconsumersSubsidiesawardedtoproducers,whichreducethecostsofproductionPricesofothergoodsFutureexpectationsChangesinsupplyduetothenatureofthegood6.2CHANGESINSUPPLYInthecaseofsupply,anychangeofpriceresultsinamovementupordowntheexistingsupplycurve,ifnootherchangesoccurtoaffectsupply.Anychangeintheconditionsotherthanmarketpricescausesashiftinthesupplycurve.7.TRANSLATETHEFOLLOWINGINTOCHINESE(1)Thepricemechanismistheprocessbywhichpricesriseandfallasaresultofchangesindemandandsupply,andtherebyactsasasignaltoproducerstoguidethemontheirproductionplans.(2)Theonlythingsthatwouldbeproducedwouldbethosegoodsforwhichconsumerswerewillingtopaysufficienttomakeitworthwhilefortheproducerstoputthemonthemarket.(3)Whenspeakingofdemandforacommodity,economistsmeanthequantitywhichbuyersarewillingtopurchaseatagivenpriceoveragivenperiodoftime.(4)Somehowthesetwoconflictingdesiresofbuyersandsellersmustbebroughtintosomekindofagreement,ortherewillbeasurplusofhighlypricedgoodswhichbuyersarenotwillingtobuy,orashortageofgoodsbecausesellerswillnotproducethemforsaleatalowprice.(5)Thisiscalledtheequilibriumpriceandisthepriceatwhichthebuyerispreparedtobuythequantitywhichthesellerispreparedtosellatthatprice,sothatthemarketisclearedandthereisnosurplusandnoshortage.(6)Iftheotherconditionswhichaffectdemandshouldchange,andnottheprice,thenourgraphwilllookdifferentbecausewehavewhatiscalledashiftinthecurve.(7)Thesupplycurvecanmoveleftwardsif,forexample,costsofproductionrose,withconsumersbeingunwillingtopaymorefortheitemandsuppliersunwillingtosupplyasmuchatthesameprice.8.QUESTIONS(1)Whatfactorsneedtobeconsideredinfixingthepriceforanewproduct?(2)Whatcausesashiftinthemarketdemandcurve?(3)Whatcausesashiftinthemarketsupplycurve?(4)Howdoesthefactoroffutureexpectationsinfluencedemandandsupply?UnitThree

Text:PriceElasticitiesofDemandandSupply

（需求与供给的价格弹性）1.Keywords2.Priceelasticityofdemand3.Priceelasticityofsupply4.Lawofdiminishingmarginalutility5.Consumersovereignty6.TranslatethefollowingintoChinese7.Questions1.KEYWORDSpriceelasticityofdemandpriceinelasticindemandpriceelasticindemandpriceelasticityofsupplysalestaxesnecessitiesoflifetotalrevenuediminishingmarginalutilityorsatisfactionsaturationpointallocationofresourcesderiveddemandconsumersovereignty2.PRICEELASTICITYOFDEMAND2.1Priceelasticityofdemand2.2Priceinelasticandelasticindemand2.3Importanceofpriceelasticityofdemand2.1PRICEELASTICITYOFDEMANDMeasureshowgreatlyapricechangeaffectsachangeindemand.2.2PRICEINELASTICANDELASTICINDEMANDPriceinelasticindemandSomegoodsaresomuchindemandthathowevermuchpricesrise,thedemandforthemremainsthesameordropsoffonlyslightly.Thesegoodsarecalledpriceinelasticindemand.PriceelasticindemandOthergoods,whichareboughtreadilyiftheirpricesarelowbutareboughtinmuchsmallerquantitiesifthepricesrise,aretermedpriceelasticindemand.2.3IMPORTANCEOFPRICEELASTICITYOFDEMANDItisimportanttogovernmenttaxationpolicy.Ifagoodisrelativelypriceinelasticindemand,thenimposingataxonitwillnotcausesalestodropsubstantially.Ifthegovernmentintendstousesalestaxestoraiserevenue,itwouldbepointlesstoputthetaxonproductswhichareelasticindemandbecause,asthetaxcausespricestorise,consumerswillbuyanuntaxedsubstituteifthatispossible(andifitischeaper),orjustcutdownthequantitytheypurchase.Itisalsoimportanttosellersasitindicatestothemwhetheradropinpricewillresultinincreasedrevenuefromincreasedsales,orwhetheritwillmerelyresultinalossoftotalrevenue.Ifsellersraisethepricesoftheirgood,anddemandiselastic,theymaylosesales,resultinginalossoftotalrevenue.Ifdemandisinelastictheycanraisepricesandnotloserevenue.3.PRICEELASTICITYOFSUPPLY3.1Priceelasticityofsupply3.2Priceinelasticandelasticinsupply3.1PRICEELASTICITYOFSUPPLYItreferstoarelativeresponsivenessofthequantitysuppliedofagoodwhenthemarketpriceofthegoodchanges.3.2PRICEINELASTICANDELASTICINSUPPLYSupplycanalsobeinelasticinresponsetochangesinprice,particularlyifthesupplyisphysicallylimitedandcannotbegreatlyincreasedintheshortrun,nomatterwhatpriceisoffered.Supplyiselasticwhenitcanbeincreasedreadily.4.LAWOFDIMINISHINGMARGINALUTILITY4.1Definitionoflawofdiminishingmarginalutility4.2Importanceoflawofdiminishingmarginalutility4.1DEFINITIONOFLAWOFDIMINISHINGMARGINALUTILITYConsumers’pleasureorsatisfactiondiminishesastheybuyeachextraunit,untiltheyreachsaturationpoint.Itisthisaspectofconsumerdemand,aswellasthelawofdemandthatbuyerswillbuymoreatalowerprice,whichhelpstomakethedemandcurveslopedownwardsfromlefttoright.4.2IMPORTANCEOFLAWOFDIMINISHINGMARGINALUTILITYThepricewhichbuyersarepreparedtoofferwillinducesupplierstomaketheirproductionplansonthebasisofthestrengthofthemarketforces.Ifconsumersarepreparedtopaymoreforcertaingoodsthisbehaviorisasignaltotheproducerstosupplythoseitemsinpreferencetoothersforwhichdemandisloworpricesobtainedarelow.Firmswillthereforeobtaintheresourcesneededtosatisfyconsumerdemand.Thepricemechanismindicateswhatshouldbeproduced,andthisinturnleadstotheallocationofresourcesforthatpurpose.5.CONSUMERSOVEREIGNTYThistermmeansthattheconsumersaresupremeandtheirdecisionsareall—importantindecidingwhatshallbeproducedandhowproductionshallbedistributed.Insuchapurelycompetitivemarket,theconsumerhascontroloverthewayinwhichtheeconomicproblemissolvedandovertheproductiondecisionsmade.Economicchoicesinthissystemaremadepurelythroughthemarketmechanismasitreactstopeople’sdemands.Thiskindofsituationisonlypartlytrueofamoderncapitalisteconomy,inwhichconsumerscanchooseonlybetweenthoseitemswhichareoffered.Theiralternativesarelimited.6.TRANSLATETHEFOLLOWINGINTOCHINESE(1)Somegoodsaresomuchindemandthathowevermuchpricesrise,thedemandforthemremainsthesameordropsoffonlyslightly.(2)Theconceptofelasticityofdemandisimportanttosellersasitindicatestothemwhetheradropinpricewillresultinincreasedrevenuefromincreasedsales,orwhetheritwillmerelyresultinalossoftotalrevenue.(3)Asthepurchaseofeachchocolatebargiveslesspleasurethantheonebefore,itmakesmoresensetousethemoneyforsomethingwhichgivesgreatersatisfaction.(4)Ifconsumersarepreparedtopaymoreforcertaingoodsthisbehaviorisasignaltotheproducerstosupplythoseitemsinpreferencetoothersforwhichdemandisloworpricesobtainedarelow.7.QUESTIONS(1)Whyistheconceptofpriceelasticityofdemandimportantforsellers?(2)Ifthegovernmentwantstoplaceataxonanitem,woulditchooseonewhichispriceelasticindemand?Givereasonsforyouranswer.(3)Explainthelawofdiminishingmarginalutility.UnitFour

Text:CostofProduction

（生产成本）1.Keywords2.Whatarecosts?3.Thevariousmeasuresofcost4.TranslatethefollowingintoChinese5.Questions1.KEYWORDSprofit-maximizingfirmtotalcostopportunitycostexplicitcostimplicitcostcashoutlaykeepingtrackofthemoneyfinancialstatementfinancialcapitalinterestrateeconomicprofitaccountingprofitfinancialreportnormalprofitfixedcostvariablecostaveragetotalcostaveragefixedcostaveragevariablecostmarginalcostprivatecostsocialcostsocialbenefit2.WHATARECOSTS?2.1Totalrevenue,totalcost,andprofit2.2Costsasopportunitycosts2.3Thecostofcapitalasanopportunitycost2.4Economicprofitversusaccountingprofit2.1TOTALREVENUE,TOTALCOST,ANDPROFITTotalrevenueTheamountthatthefirmreceivesforthesaleofitsoutputiscalleditstotalrevenue.Itequalsthequantityofoutputthefirmproducestimesthepriceatwhichitsellsitsoutput.TotalcostTheamountthatthefirmpaystobuyinputsiscalleditstotalcost.ProfitProfitisafirm’stotalrevenueminusitstotalcost.Thatis,Profit=Totalrevenue–Totalcost.2.2COSTSASOPPORTUNITYCOSTS2.2.1Definitionofopportunitycosts2.2.2Explicitandimplicitcosts2.2.3Differencebetweeneconomistsandaccountants2.2.1DEFINITIONOFOPPORTUNITYCOSTSTheopportunitycostofanitemreferstoallthosethingsthatmustbeforgonetoacquirethatitem.Wheneconomistsspeakofafirm’scostofproduction,theyincludealltheopportunitycostsofmakingitsoutputofgoodsandservices.2.2.2EXPLICITANDIMPLICITCOSTSExplicitcostsSomecostsrequirethefirmtopayoutsomemoney,theyarecalledexplicitcosts.ImplicitcostsSomeofafirm’sopportunitycosts,calledimplicitcosts,donotrequireacashoutlay.2.2.3DIFFERENCEBETWEENECONOMISTSANDACCOUNTANTSThedistinctionbetweenexplicitandimplicitcostshighlightsanimportantdifferencebetweenhoweconomistsandaccountantsanalyzeabusiness.Economistsareinterestedinstudyinghowfirmsmakeproductionandpricingdecisions.Becausethesedecisionsarebasedonbothexplicitandimplicitcosts,economistsincludebothwhenmeasuringafirm’scosts.Bycontrast,accountantshavethejobofkeepingtrackofthemoneythatflowsintoandoutoffirms.Asaresult,theymeasuretheexplicitcostsbutoftenignoretheimplicitcosts.2.3THECOSTOFCAPITALASANOPPORTUNITYCOSTAnimportantimplicitcostofalmosteverybusinessistheopportunitycostofthefinancialcapitalthathasbeeninvestedinthebusiness.2.4ECONOMICPROFITVERSUSACCOUNTINGPROFIT2.4.1Economicprofit2.4.2Accountingprofit2.4.3Normalprofit2.4.1ECONOMICPROFITAneconomistmeasuresafirm’seconomicprofitasthefirm’stotalrevenueminusalltheopportunitycosts(explicitandimplicit)ofproducingthegoodsandservicessold.Forabusinesstobeprofitablefromaneconomist’sstandpoint,totalrevenuemustcoveralltheopportunitycosts,bothexplicitandimplicit.2.4.2ACCOUNTINGPROFITAnaccountantmeasuresthefirm’saccountingprofitasthefirm’stotalrevenueminusonlythefirm’sexplicitcosts.Noticethatbecausetheaccountantignorestheimplicitcosts,accountingprofitisusuallylargerthaneconomicprofit.2.4.3NORMALPROFITEconomistscallazeroeconomicprofitasnormalprofit.Normalprofitistheminimumprofitnecessarytokeepafirminoperation.Zeroeconomicprofitsignifiesthereisjustenoughtotalrevenuetopaytheownersforallexplicitandimplicitcosts.Stateddifferently,thereisnobenefitfromreallocatingresourcestoanotheruse.3.THEVARIOUSMEASURESOFCOST3.1Fixedandvariablecosts3.2Averageandmarginalcost3.3Privatecostsandsocialcosts3.1FIXEDANDVARIABLECOSTSFixedcostsSomecosts,calledfixedcosts,donotvarywiththequantityofoutputproduced.Theyareincurredevenifthefirmproducesnothingatall.VariablecostsSomeofthefirm’scosts,calledvariablecosts,changeasthefirmaltersthequantityofoutputproduced.TotalcostAfirm’stotalcostisthesumoffixedandvariablecosts.

3.2AVERAGEANDMARGINALCOST3.2.1Averagetotalcost3.2.2Averagefixedcost3.2.3Averagevariablecost3.2.4Marginalcost

3.2.1AVERAGETOTALCOSTAveragetotalcostdividedbythequantityofoutputiscalledaveragetotalcost.Becausetotalcostisjustthesumoffixedandvariablecosts,averagetotalcostcanbeexpressedasthesumofaveragefixedcostandaveragevariablecost.Averagetotalcosttellsusthecostofatypicalunitofoutputiftotalcostisdividedevenlyoveralltheunitsproduced.

3.2.2AVERAGEFIXEDCOSTAveragefixedcostisthefixedcostdividedbythequantityofoutput.

3.2.3AVERAGEVARIABLECOSTAveragevariablecostisthevariablecostdividedbythequantityofoutput.

3.2.4MARGINALCOSTMarginalcost=Changeintotalcost/ChangeinquantityMarginalcosttellsustheincreaseintotalcostthatarisesfromproducinganadditionalunitofoutput.

3.3PRIVATECOSTSANDSOCIALCOSTS3.3.1Privatecosts3.3.2Socialcosts

3.3.1PRIVATECOSTSTheprivatecostsofafirmarethesumoftheexplicitandimplicitcoststhatitincurs.

3.3.2SOCIALCOSTSThesocialcostsofafirmarethosethatsocietyingeneralbearsbecauseofthefirm’sactivities.Socialcostswouldincludetheprivatecostsofafirm,sincepresumablyallofthefirm’sresourcescouldbeusedelsewhereinproducinggoodsofvalueto(atleastsomemembersof)society.However,socialcostswouldalsoincludecostspaidforbysocietybutnotbythefirm,eventhoughsuchcostswerearesultofproductionbythefirm.

4.TRANSLATETHEFOLLOWINGINTOCHINESE(1)Successfulmanagersarecertainlyawarethatitisthelevelofcostrelativetorevenuethatdeterminesthefirm’soverallprofitability.(2)Totalrevenueequalsthequantityofoutputthefirmproducestimesthepriceatwhichitsellsitsoutput.(3)Theopportunitycostofanitemreferstoallthosethingsthatmustbeforgonetoacquirethatitem.(4)Forabusinesstobeprofitablefromaneconomist’sstandpoint,totalrevenuemustcoveralltheopportunitycosts,bothexplicitandimplicit.(5)Averagetotalcosttellsusthecostofatypicalunitofoutputiftotalcostisdividedevenlyoveralltheunitsproduced,andmarginalcosttellsustheincreaseintotalcostthatarisesfromproducinganadditionalunitofoutput.(6)However,sincethepartofsocialcostthatisnotincludedinprivatecostisnotusuallyconsideredbytheprofit-maximizingfirminitsdecision-makingprocess,itwillgenerallybeignoredinourdiscussionofthefirm.5.QUESTIONS(1)Whatistherelationshipbetweenafirm’stotalrevenue,profit,andtotalcost?(2)Whatistherelationshipbetweenafirm’stotalcost,averagetotalcost,andmarginalcost?(3)Explaintheopportunitycost.(4)Whatisthedifferencebetweeneconomicprofitandaccountingprofit.(5)Giveanexampleofasocialcostwhichispaidforbysocietybutnotbythefirmbecauseoftheresultofproductionbythefirm,explain.UnitFive

Text:Monopoly

（垄断）1.Keywords2.Whymonopoliesarise3.Publicpolicytowardmonopolies4.TranslatethefollowingintoChinese5.Questions1.KEYWORDSbarrierstoentrymarketpowerbusinesslicensepatentandcopyrightlawsnaturalmonopolyeconomiesofscalemonopolypowereconomicwell-beingtotalsurplusmarginal-costpricingdead-weightlossaverage-costpricingregulatorysystempublicownershipspecial-interestgroupindustrialorganizationmarketfailurepoliticalfailure2.WHYMONOPOLIESARISE2.1DefinitionandthefundamentalcauseofMonopoly2.2Threemainsourcesforbarrierstoentry2.1DEFINITIONANDTHEFUNDAMENTALCAUSEOFMONOPOLY2.1.1DefinitionofMonopoly2.1.2FundamentalcauseofMonopoly2.1.1DEFINITIONOFMONOPOLYAfirmisamonopolyifitisthesolesellerofitsproductandifitsproductdoesnothaveclosesubstitutes.2.1.2FUNDAMENTALCAUSEOFMONOPOLYThefundamentalcauseofmonopolyisbarrierstoentry:Amonopolyremainstheonlysellerinitsmarketbecauseotherfirmscannotenterthemarketandcompetewithit.Barrierstoentry,inturn,havethreemainsources:Akeyresourceisownedbyasinglefirm;Thegovernmentgivesasinglefirmtheexclusiverighttoproducesomegoodorservice;Thecostsofproductionmakeasingleproducermoreefficientthanalargenumberofproducers.