MN 2565 St Johns River State College The Shape of Indifference Curves Essay
Description
Plots should fit your own example x-axes and y-axes should be labelled according to your narrative, if you talk about apples, quantity of apples should be shown on the axes
You can plot the graphs with software like microsoft excel and insert in document
Hand-made plots, taken pic with phone and inserted in a word document are ok
Numbers or abstract notation of quantities such as Q1 and Q2 is ok as long as you correctly explain whether Q1 > Q2 or vise versa and have this properly shown on the graph.
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MN-2565 Economics for Business
Course Work
Support Material 2
Feedback:
Structure?
Volume per sub-question (word count)?
Plots/graphs incorporation
References
Structure
a)
Insert your own plot
annotated according to your example
mine says CDs and books
because this was the example I gave you
(i.e. dont just copy smth from somewhere
adapt it to your case this is required to
show that you can pass it through your own
understanding)
b)
Explain technically
how you derive it
Which info from the first figure
is used to derive the second figure
(follow the explanation
in my video)
c)
Discuss the plot in b) in terms of its
economic meaning
How the shape of the IC will affect the slope
of the demand curve
What does this slope of the demand curve
tells us about its elasticity?
How would the slope look like if the good
was elastic instead
Word count
Plots
Plots should fit your own example x-axes and y-axes should
be labelled according to your narrative, if you talk about
apples, quantity of apples should be shown on the axes
Hand-made plots, taken pic with phone and inserted in a word
document are ok
Numbers or abstract notation of quantities such as Q1 and Q2
is ok as long as you correctly explain whether Q1 > Q2 or vise
versa and have this properly shown on the graph.
Make sure that when you state
Q1>Q2
the plot does not show the opposite
as in this case:
Here Q1 < Q2
References
3-5 references
textbooks are ok
do not copy and paste anything
plagiarism is penalized very
seriously
Feedback:
What did you learn this lesson?
What remained unclear?
MN-2565 Economics for Business
LECTURE 3 PRODUCTION THEORY & SUPPLY IN
PERFECTLY COMPETITIVE MARKETS
Feedback:
References in CW?
Seminars
RE-CAP
LECTURE 2
LO1 - ELASTICITY
LO2 CONSUMER THEORY:
- indifference curve
- budget constraint
- deriving the demand curve
LECTURE 2: Deriving the DEMAND CURVE
Topics
Introduction to the course and overview of content.
Micro 1 - Supply, Demand and Market Equilibrium
Micro 2 - Consumer Theory and the Shape and Position of the Demand Curve
Micro 3 - Production Theory and the Supply Curve in a Perfectly Competitive Market
Micro 4 - Welfare Analysis and Market Failure
Micro 5 Monopoly
Macro 1 - GDP, Prices, Unemployment
Macro 2 & 3 - 2. Economic Growth & 3. The Monetary System
Macro 4 & 5 - 4. Aggregate D & Supply in the ST and LR & 5. Fiscal and Monetary Policy
Course Summary - Summary course - Feedback on coursework.
LECTURE 3
STRUCTURE AND LOGICS OF MN2565 CONTENT
LO1 PRODUCTION THEORY
LO2 SUPPLY IN PERFECT COMPETITION
LECTURE 3: PRODUCTION THEORY
COST OF PRODUCTION
- economic vs accounting counting of costs
- explicit & implicit costs
- short term & long term costs
Most interesting point for the firm
- marginal costs (MC)
- FC, VC, TC, AFC, AVC, ATC curves
- efficient scale vs BEP
MC = MR
LECTURE 3: PRODUCTION THEORY
COST OF PRODUCTION
- total cost (TC) vs opportunity cost & total revenue (TR)
- Average Cost (AC) = Total Cost (TC)/Quantity produced (Q)
- Average Revenue (AR) = TR / Quantity sold (Q)
- Marginal Cost (MC) = change in TC / 1 more unit produced
- Marginal Revenue (MR) = change in TR / 1 more unit sold
LECTURE 3: PRODUCTION THEORY
- Profit: ? = TR - TC
- economic vs accounting counting of costs
LECTURE 3: PRODUCTION THEORY
- Total Cost (TC)
LECTURE 3: PRODUCTION THEORY
- marginal costs (MC)
LECTURE 3: PRODUCTION THEORY
- FC, VC, TC, AFC, AVC, ATC curves
LECTURE 3: PRODUCTION THEORY
- FC, VC, TC, AFC, AVC, ATC curves
LECTURE 3: PRODUCTION THEORY
- FC, VC, TC, AFC, AVC, ATC curves
LECTURE 3: PRODUCTION THEORY
- efficient scale & BEP
LECTURE 3: PRODUCTION THEORY
- efficient scale & BEP
LECTURE 3: SUPPLY IN PERFECT COMPETITION
-
total revenue, total cost and profit
profit maximization & firms supply curve
normal & abnormal profit
shutting down vs exiting
- SUPPLY CURVE IN A COMPETITIVE MARKET
LECTURE 3: SUPPLY IN PERFECT COMPETITION
- PERFECTLY COMPETITIVE MARKET
many firms
? firms are price takers
? ease of entry and exit
?
LECTURE 3: SUPPLY IN PERFECT COMPETITION
- total revenue, total cost and profit
LECTURE 3: SUPPLY IN PERFECT COMPETITION
- profit maximization
Profit Maximization
LECTURE 3: SUPPLY IN PERFECT COMPETITION
- normal & abnormal profit
LECTURE 3: SUPPLY IN PERFECT COMPETITION
- shutting down vs exiting
LECTURE 3: SUPPLY IN PERFECT COMPETITION
- SUPPLY CURVE IN A COMPETITIVE
MARKET
LECTURE 3: SUPPLY IN PERFECT COMPETITION
- SUPPLY CURVE IN A COMPETITIVE
MARKET
LECTURE 3: SUPPLY IN PERFECT COMPETITION
LECTURE 3: SUPPLY IN PERFECT COMPETITION
- SUPPLY CURVE IN A COMPETITIVE
MARKET
LECTURE 3: SUPPLY IN PERFECT COMPETITION
MC
=
- ST Supply Curve
LECTURE 3:
Long Run
SUPPLY
IN
PERFECT
COMPETITION
Profit
=
(P ATC)
*
Q
LECTURE 3:
SUPPLY
IN
PERFECT
COMPETITION
LECTURE 3: PRICE DISCRIMINATION
-
price discrimination
vertical differentiation
peak-load pricing
Feedback:
What did you learn this lesson?
What remained unclear?
Thanks for your attention!
The coursework assignment for this module is an individual assignment worth 30% of the overall
module mark.
Coursework Brief
Coursework question:
(0) With the aid of appropriate diagrams, explain why indifference curves are traditionally convex to
the origin. (10%)
(ii) Given the indifference curve for two-goods is convex, derive a price inelastic demand curve for
Good X (10%).
(ii) With reference to the previous elements of this coursework question, discuss the links between
the indifference curve, price elasticity estimates and the theory of supply and demand in
economics (80%).
Key Marking criteria will include:
Initiative: originality, innovativeness of answer
Assignment Structure: clarity of aims, objective, structure and presentation
Quality of Writing: Readability and ability to convey key message(s) concisely
. Quality/Scope of Literature Review: Understanding of established knowledge
. Suitability of Literature: Use of suitable sources, focused to answer key research aims
Literature Analysis: Quality/level of analytical skill demonstrated
Insightfulness of Analysis: Interest and usefulness of findings, conclusions drawn.
Understanding: Assignment demonstrates students have understood key topics
Overall Quality of Assignment
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Explanation & Answer:
1500 Words
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