6. Fundamental Concepts of Microeconomics

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Presentation transcript:

6. Fundamental Concepts of Microeconomics Objectives and Methods of Microeconomics The Consumer The Firm The Market Basic Issues in Welfare Economics A. Endres & V. Radke Economics for Environmental Studies

6.1 Objectives and Methods of Microeconomics Art Work 1: David Dalla Venezia, No. 269, Oil on Canvas, 2000 A. Endres & V. Radke Economics for Environmental Studies

Conflict Resolution and Coordination Art Work 2: Theater Bonn, Germany, FRIDA KAHLO, 2003. Photo: Thilo Beu. A. Endres & V. Radke Economics for Environmental Studies

Economics for Environmental Studies 6.2 The Consumer Fig. 6.1 The individual demand curve A. Endres & V. Radke Economics for Environmental Studies

Economics for Environmental Studies Increasing Income Fig. 6.2 Comparative static analysis of demand as income increases A. Endres & V. Radke Economics for Environmental Studies

Economics for Environmental Studies 6.3 The Firm Fig. 6.3 Equilibrium output decision of a perfectly competitive firm A. Endres & V. Radke Economics for Environmental Studies

Economics for Environmental Studies Equilibrium Supply Fig. 6.4 Equilibrium supply for alternative prices A. Endres & V. Radke Economics for Environmental Studies

Economics for Environmental Studies Supply Curve Fig. 6.5 The supply curve of the firm A. Endres & V. Radke Economics for Environmental Studies

Comparative Statics of Supply Fig. 6.6 Comparative static analysis of the individual supply curve A. Endres & V. Radke Economics for Environmental Studies

Economics for Environmental Studies 6.4 The Market Fig. 6.7 Deriving the market demand curve by horizontal aggregation of the individual demand curves A. Endres & V. Radke Economics for Environmental Studies

Economics for Environmental Studies Market Supply Fig. 6.8 Deriving the market supply curve by horizontal aggregation of individual supply curves A. Endres & V. Radke Economics for Environmental Studies

Economics for Environmental Studies Market Equilibrium Fig. 6.9 Market equilibrium A. Endres & V. Radke Economics for Environmental Studies

Comparative Statics of Equilibrium Fig. 6.10 Comparative static analysis of the market equilibrium A. Endres & V. Radke Economics for Environmental Studies

6.5 Basic Issues in Welfare Economics Fig. 6.11 Socially optimal and perfectly competitive level of production A. Endres & V. Radke Economics for Environmental Studies

Inter-firm Allocation Fig. 6.12 Cost-effective inter-firm allocation A. Endres & V. Radke Economics for Environmental Studies

Inter-consumer Allocation Fig. 6.13 “Benefit-effective” inter-consumer allocation A. Endres & V. Radke Economics for Environmental Studies

Economics for Environmental Studies Market Failure Fig. 6.14 Market failure due to negative externalities A. Endres & V. Radke Economics for Environmental Studies