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

City, where a landlord pleaded guilty to hiring a “hit man” to kill some tenants and set fires to the apartments of others to sc ...

amount that any profit-maximizing producer will accept for the product. To accept any amount less than the marginal cost would r ...

Who Gains and Who Loses? Existing tenants in rent-controlled accommodations are the principal gainers from a policy of rent cont ...

Figure 12-6 The Allocative Efficiency of Perfect Competition Allocative efficiency occurs at the level of output where the sum o ...

Perhaps the most striking effect of rent control is the long-term decline in the amount and quality of rental housing. Ryan McGi ...

Notice that if output is only there is no consumer or producer surplus earned on the units between and Thus, the areas 1 and 2 i ...

Policy Alternatives Most rent controls today are meant to protect lower-income tenants, not only against “profiteering” by landl ...

Figure 12-7 The Deadweight Loss of Monopoly follows that the lower monopoly output must result in a smaller total of consumer an ...

housing cannot be voted out of existence; all that can be done is to transfer the costs from one set of persons to another. ...

Monopoly restricts output and reduces total surplus, thereby imposing a deadweight loss on society. If this market were perfectl ...

5.3 An Introduction to Market Productive Efficiency In this chapter we have seen the effects of governments intervening in compe ...

Allocative Efficiency and Market Failure We have seen that perfect competition is allocatively efficient and that monopoly and o ...

To address such questions, economists use the concept of market efficiency. We will explore this concept in more detail in later ...

A simple example illustrates the problem. Markets for most agricultural commodities are highly competitive, with many small prod ...

Figure 5-5 Reinterpreting the Demand and Supply Curves for Pizza consumers are willing to pay up to $15 for the 200th pizza. In ...

12.2 Economic Regulation to Promote Efficiency Monopolies, cartels, and price-fixing agreements among oligopolists, whether expl ...

according to their preferences and willingness to pay. Some consumers value pizza so highly that they are willing to pay $20 for ...

extraction of fossil fuels and the harvesting of forests within their provincial boundaries, and charge royalties (a share of re ...

The reason the market supply curve is upward sloping is that it reflects the costs of many producers, and they are not all the s ...

Regulation of Natural Monopolies The clearest case for public intervention arises with a natural monopoly —an industry in which ...