Introduction Foundations Basics Language of economics Fundamental problem facing mankind “Our resources are limited (scarce)‚ but our wants (aspirations to good life ‚ ambitions ‚ needs‚ dreams) are unlimited.” SCARCITY = Budget Constraint Proof Resources Limited * Time: 24 hours day * Time is money * 20 hours in bed (leisure) * Safe drinkable water = Less than 1% of total water * $2000 apt/studio‚ cook own food * $2000000 a month * Mansion
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What is Economics? Economics is the study of choices Choices must be made because resources are scarce Make a list of all the stuff you like to acquire assuming unlimited income Dr. S Home on ICWW Tons of boats F-350‚ Club Cab Season tickets to NYY‚ NJ Nets‚ NY Giants Condo in NYC Tickets to Cup Races Mobile Home Triumph TR-6 Toyota Landcruiser Realistic income Home near ICWW A boat Occasional tickets Toyota 4 Runner Choices mean we make trade-offs Opportunity Cost Informal
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economists use models. 7. Why is the shape of the economy’s production possibility curve concave? 8. The following data show the production possibilities for a hypothetical economy during one year: Output of X Output of Y 1000 0 800 100 600 200 400 300 200 400 0 500 (a) Plot these points on a graph. Do they appear to lie along a straight line? What is that line production possibility frontier? (b) Explain why output levels X=400‚ Y=200 or X=300‚ Y=300 are inefficient. Show these output
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4 A demand 0 0 100 200 300 400 500 600 700 800 Quantity The minimal price and shutdown point – repetition lecture V P MC AC AVC P = MR Pmin Pshutdown Qshut Qmin QE Q Demand and Marginal Revenue Faced by a Competitive Firm - repetition Price $ per bushel Firm Price $ per bushel Industry $4 d $4 D 100 200 Output (bushels) 100 Output (millions of bushels) TC‚ TR TR TC QD/G - b k breakeven points i t 0 P‚ AC AC Q
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Assume market demand is represented by: P = 30 – Q where Q = Q1 + Q2 Assume Q1 = Q2 Assume AC = MC = 12 (implies zero Fixed Cost) 4 From Firm 1’s perspective P 30 If Firm 1 believes Firm 2 will produce entire market demand (Q=18)‚ it will produce zero If Firm 1 believes Firm 2 will produce zero‚ it will act like a monopolist & produce 9 units & set monopolist P = $21 21 12 MC = AC MR 0 9 15 18 D 30 Q 5 From Firm 2’s perspective P 30 If Firm 2 believes Firm 1 will produce
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elasticity of demand is as follows: Proportionate (or percentage) change in quantity demanded Proportionate (or percentage) change in price This can be summarised as: (Qd / mid Qd ( (P / mid P The following table shows the quantity of a product demanded at two different prices: |P ($) |Qd | |16 |25 | |14 |35 | (a) Calculate the proportionate change
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36a and verify that the voltages add up to 0V. = 7V+2V+6V= 15V. 15V+ -7V + -2V + -6V= 0V 26. Calculate the value of the current in Figure 4.37b. 12V/150Ω= 0.08 x = 80mA Correction: Vr1= Vs- vr2= 12V-3V=9V Ir1= vr1/r1 = 9V/150Ω= 60mA 30. For the circuit shown in Figure 4.38b‚ calculate the voltage from point A to ground. = 12kΩ + 1.2kΩ= 13‚200 x = 13.2kΩ = (9V)1.2kΩ/13.2kΩ = 0.818 x = 818mV 40. Calculate the component voltage and power values for the circuit shown in Figure 4.41b
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able to accept for a good. D. none of the above. 15. In a competitive market‚ the market demand is Qd = 60 - 6P and the market supply is Qs = 4P. A price ceiling of $3 will result in A. A shortage of 18 units. B. A shortage of 30 units. C. A surplus of 30 units. D. A surplus of 12 units. E. neither a shortage nor a surplus. 16. In a competitive market‚ the market demand is Qd = 60 - 6P and the market supply is Qs = 4P. The full economic price under a price ceiling of $3 is
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You design websites for local businesses. You charge Rs 50 000 per website‚ and currently Rs.50‚000 website design 12 websites per month‚ so that your total revenue is Rs. 6‚oo‚ooo. Earlier you were designing 15 websites per month @ Rs 30 000 per website Rs.30‚000 Your costs are rising (including the opportunity cost of your time) so you re thinking of raising the price time)‚ you’re to Rs. 80‚000. The law of demand says that you won’t sell as many won t websites
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Energy 34 (2009) 2001–2008 Contents lists available at ScienceDirect Energy journal homepage: www.elsevier.com/locate/energy Operational strategy and marginal costs in simple trigeneration systems M.A. Lozano‚ M. Carvalho‚ L.M. Serra* ´ Group of Thermal Engineering and Energy Systems (GITSE)‚ Aragon Institute of Energy Research (I3A)‚ Department of Mechanical Engineering‚ Universidad de Zaragoza‚ CPS de ´ Ingenieros‚ Marıa de Luna 3‚ 50018 Zaragoza‚ Spain a r t i c l e i n f o
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