Figure 5.1 Efficiency in consumption.

Figure 5.1 Efficiency in consumption.
BY AXa AXb S A0 AX IB1 IB0 IA . a BYa AYa BYb . b AYb IB1 IB0 IA BX B0 BXa BXb T AY

Figure 5.2 Efficiency in production.
KY LXa LXb X0 LX IY1 IY0 IX a KYa . KXa KYb . b KXb IY1 IY0 IX LY Y0 LYa LYb KX

Figure 5.3 Product-mix efficiency.
YM a Ya b Yb Yc c I XM X Xa Xb XC

Figure 5.4 The set of allocations for consumption efficiency.
BY S A0 AX B A C B A B A B A B B A A . B A B A B A C A B BX B0 T AY

Figure 5.5 The utility possibility frontier.
UB T Z S R UA

Figure 5.6 Maximised social welfare.
UB W a b c W UA

Figure 5.7 Welfare and efficiency.
UB D E C W2 W1 UA

Figure 5.8 Utility maximisation.
b Y* U* c X X* Xmax

Figure 5.9 Cost minimisation.
Y K3 X* K2 a K1 b c X* L L1 L2 L3

Figure 5.10 Profit maximisation.
P, c Marginal cost PX X X*

£ X X* Figure 5.12 The efficient level of supply for a public good.
MRUSA + MRUSB = MWTPA + MWTPB MC = MRT MRUSB = MWTPB MRUSA = MWTPA X X*

Figure 5.13 The bargaining solution to an externality.
MB MEC a c b d Hours of music M* M0

Figure 5.14 Taxation for externality correction.
SMC PMCT PMC PY t Y Y* Y0

£ DY SMC PYt PY0 PMC DY MRY Yt Y0 Y* Yc
Figure The polluting monopolist. DY SMC PYt e f PY0 PMC b a c d DY MRY Y Yt Y0 Y* Yc

Presentation on theme: "Figure 5.1 Efficiency in consumption."— Presentation transcript: