Latest Articles
Cleaning Up the Detergent Market (1/25/2012)
A cartel in detergents broke up over defections from agreed prices and promotion practices.
A cartel in detergents broke up over defections from agreed prices and promotion practices.
Profit Maximization Under Natural Monopoly - youtube (1/23/2012)
Natural monopoly with decreasing average total cost can still make profit by equating marginal revenue with marginal cost while achieving economic efficiency through price discrimination.
Natural monopoly with decreasing average total cost can still make profit by equating marginal revenue with marginal cost while achieving economic efficiency through price discrimination.
Profit Maximization Under Single Pricing (transcript) (1/20/2012)
Single-price searchers maximize profit by setting a uniform price where marginal revenue is equal to marginal cost.
Single-price searchers maximize profit by setting a uniform price where marginal revenue is equal to marginal cost.
Demand Elasticity and Total Revenue (transcript) (1/20/2012)
A linear downward-sloping demand curve has a range of demand elasticities and an inverted U-shaped total revenue curve under single pricing.
A linear downward-sloping demand curve has a range of demand elasticities and an inverted U-shaped total revenue curve under single pricing.
Who Has Comparative Advantage? - recording transcript (1/16/2012)
The different relative slopes of the production functions graphically illustrate the different relative costs of producing grapes and nuts between the two workers.
The different relative slopes of the production functions graphically illustrate the different relative costs of producing grapes and nuts between the two workers.
Gaining Through Comparative Advantage - recording transcript (1/16/2012)
Partial or complete specialization according to comparative advantage is a win-win strategy to increase total output, even though one party might enjoy absolute advantage over another party.
Partial or complete specialization according to comparative advantage is a win-win strategy to increase total output, even though one party might enjoy absolute advantage over another party.
Complements and Substitutes - youtube (1/2/2012)
Complements and substitutes illustrate the difference between changes in quantity demanded vs changes in demand.
Complements and substitutes illustrate the difference between changes in quantity demanded vs changes in demand.
