An explanation of opportunity costs and the difference between accounting and economic profit, as well as a discussion of my family’s secret recipe for Italian Christmas cookies.
An explanation of fixed versus variable costs, the relationship between the production function and the total cost curve, and the role of marginal costs.
An explanation average fixed costs, average variable costs, average total costs, marginal costs, and economies of scale.
An explanation of perfect competition, including assumptions and the results as a price taker.
An explanation of how firms minimize losses, and the difference between shutting down in the short run and exiting in the long run.
An explanation of how firms enter and exit the market in the long run, resulting in zero economic profit.
An explanation of monopolies, including their ability to set prices based on output and price effects.
An explanation of why monopolies exist due to barriers to entry, including owning the only resources to produce a product, copyrights and patents, and natural monopolies.
An explanation of how monopolies can maximize profits in the short run and long run, as well as the deadweight loss inefficiency that results.
An explanation of price discrimination and a discussion of policies to improve market efficiency.
An explanation of monopolistic competition and oligopoly, including the implications for profits in monopolistic competition, and a comparison between monopolistic competition and perfect competition.
An explanation of pricing in an oligopoly using the tit-for-tat game and the prisoner’s dilemma.
A discussion of three different choices made by our households and an explanation of budget constraints and indifference curves.
An explanation of the consumer’s optimal bundle of consumption and its relationship to prices and income.
An explanation of the labor-leisure model, including the role of wages
An explanation of the two-period consumer model, including the role of interest rates.
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