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

Finally, some goods are neither excludable nor rivalrous. These are called public goods or sometimes collective consumption good ...

Figure 9-11 Short-Run Versus Long-Run Profit Maximization for a Competitive Firm 3. Existing firms must not be earning profits. ...

Figure 16-2 The Optimal Provision of a Public Good How much of a public good should the government provide? It should provide th ...

A competitive firm that is not at the minimum point on its LRAC curve is not maximizing its long-run profits. A competitive firm ...

adding and vertically, we derive society’s marginal benefit curve, The marginal cost of providing the public good is shown by MC ...

Figure 9-12 A Typical Competitive Firm When the Industry Is in Long- Run Equilibrium industry is in long-run equilibrium. Becaus ...

Asymmetric Information Information is, of course, a valuable commodity, and markets for information and expertise are well devel ...

Changes in Technology Our discussion of firms’ long-run decisions has assumed that all firms in the industry have the same techn ...

In general, moral hazard exists when one party to a transaction has both the incentive and the ability to behave in a way that s ...

Figure 9-13 Plants of Different Vintages in an Industry with Continuous Technological Progress What happens in a competitive ind ...

transaction in his or her favour. Codes of professional ethics and licensing and certification practices, both governmental and ...

Industries subject to continuous technological change have three common characteristics. The first is that plants of different a ...

many economists argued that the expectation of similar future policies would lead the banks to continue their excessively risky ...

In industries with continuous technological improvement, low-cost plants will exist side by side with older high-cost plants. Th ...

company). On the other side, someone who knows that she is at low risk and pays a higher price than the amount warranted by her ...

Declining Industries What happens when a competitive industry in long-run equilibrium experiences a continual decrease in the de ...

expected from an average one-year-old car on the road. Consider his theory. Any particular model year of car will include a cert ...

age of equipment in use rises steadily. The untrained observer, seeing the industry’s plight, is likely to blame it on the old e ...

would then conduct more transactions, for two reasons. First, owners wanting to sell good used cars would be more likely to sell ...

Summary ...