Microeconomics (Christopher T.S. Ragan) (z-lib.org)

The Decision Makers and Their Choices Three types of decision makers operate in any economy. The first is consumers. Sometimes w ...

AVC, AFC, and ATC, as we did in the short run; in the long run, there is only one LRAC for any given set of input prices. The Sh ...

implement regulations that must be followed by consumers and producers. How Are Decisions Made? How do consumers, producers, and ...

equipment is useful only when the volume of output that the firm can sell justifies using that equipment. For example, assembly ...

Firms and consumers who are trying to maximize usually need to weigh the costs and benefits of their decisions at the margin. Fo ...

Such diseconomies may be associated with the difficulties of managing and controlling an enterprise as its size increases. At fi ...

Figure 1-4 The Circular Flow of Income and Expenditure These are their incomes. Producers use the factor services they buy to ma ...

returns. In the short run, at least one factor is fixed, and the law of diminishing returns ensures that returns to the variable ...

they spend this income buying goods and services, money flows through goods markets to generate income for producers. The prices ...

Figure 8-2 LRAC and SRATC Curves Each SRATC curve is tangent at some point to the LRAC curve. With given technology, each plant ...

Production and Trade Individual producers decide which goods to produce and how to produce them. Production is a very complex pr ...

Figure 8-3 The Relationship Between the LRAC Curve and the SRATC Curves To every point on the LRAC curve, there is an associated ...

First, individual abilities differ, and specialization allows individuals to do what they can do relatively well while leaving e ...

Lessons From History 8-1 Jacob Viner and the Clever Draftsman Jacob Viner (1892–1970) was born in Montreal and studied economics ...

specialized tasks by using specialized machinery and robotics. Each worker repeatedly does one or a few small tasks that represe ...

craftsman and to follow my instructions, absurd though they might be.” Viner’s mistake was to require that the draftsman connect ...

must find someone who has a hammer and wants wheat. A successful barter transaction thus requires what is called a double coinci ...

2 Economists shift back and forth between speaking in physical terms (“increasing returns”) and cost terms (“decreasing costs”). ...

The revolution in shipping and in computer technology has drastically reduced communication and transportation costs. This reduc ...

8.2 The Very Long Run: Changes in Technology In the long run, profit-maximizing firms faced with given technologies choose the c ...