Lecture 5: Competitive market and general equilibrium Advanced Micro Theory MSc.EnviNatResEcon. 1/2006 Charit Tingsabadh

Chapter 8 Competitive Firms and Markets

Figure 8.1 Residual Demand Curve

Figure 8.2 Maximizing Profit

Figure 8.3 How a Competitive Firm Maximizes Profit

Page 240 Solved Problem 8.1

Figure 8.4 The Short-Run Shutdown Decision

Figure 8.5 How the Profit- Maximizing Quantity Varies with Price

Figure 8.6 Effect of an Increase in the Cost of Materials on the Vegetable Oil Supply Curve

Figure 8.7 Short-Run Market Supply with Five Identical Lime Firms

Figure 8.8 Short-Run Market Supply with Two Different Lime Firms

Figure 8.9 Short-Run Competitive Equilibrium in the Lime Market

Figure 8.10 Short-Run Effect of a Specific Tax in the Lime Market

Figure 8.11 The Short-Run and Long-Run Supply Curves

Table 8.1 Entry and Exit Rates in Selected U.S. Industries,1972–1982

Figure 8.12a Long-Run Firm and Market Supply with Identical Vegetable Oil Firms

Figure 8.12 Long-Run Firm and Market Supply with Identical Vegetable Oil Firms

Figure 8.12b Long-Run Firm and Market Supply with Identical Vegetable Oil Firms

Application (Page 257) Upward- Sloping Long-Run Supply Curve for Cotton

Figure 8.13 Long-Run Market Supply in an Increasing-Cost Market

Figure 8.14 Long-Run Market Supply in a Decreasing-Cost Market

Figure 8.15 The Short-Run and Long-Run Equilibria for Vegetable Oil

Page 263 Solved Problem 8.3

Figure 8.16 Rent

Chapter 10 General Equilibrium and Economic Welfare

Table 10.1 Adjustment in the Corn and Soybean Markets

Figure 10.1 Relationship Between the Corn and Soybean Markets

Figure 10.1a Relationship Between the Corn and Soybean Markets

Figure 10.1b Relationship Between the Corn and Soybean Markets

Figure 10.2 Minimum Wage with Incomplete Coverage

Page 320 Solved Problem 10.1

Figure 10.3 Endowments in an Edgeworth Box

Figure 10.3a Endowments in an Edgeworth Box

Figure 10.3b Endowments in an Edgeworth Box

Figure 10.3c Endowments in an Edgeworth Box

Figure 10.4 Contact Curve

Figure 10.5 Competitive Equilibrium

Figure 10.5a Competitive Equilibrium

Figure 10.5b Competitive Equilibrium

Figure 10.6 Comparative Advantage and Production Possibility Frontiers

Figure 10.6a,b Comparative Advantage and Production Possibility Frontiers

Figure 10.6c Comparative Advantage and Production Possibility Frontiers

Page 332 Solved Problem 10.3

Figure 10.7 Optimal Product Mix

Figure 10.8 Competitive Equilibrium

Application (Page 338–339) Wealth Distribution in the United States

Application (Page 338 Detail) Wealth Distribution in the United States

Application (Page 339 Detail) Wealth Distribution in the United States

Figure 10.9 Welfare Maximization

Figure 10.9a Welfare Maximization

Figure 10.9b Welfare Maximization

Table 10.2 Preferences over Allocations of Three People