Class Notes (834,585)
Canada (508,623)
Economics (994)
ECON 101 (318)
Lecture

Producer or outsource.docx

5 Pages
79 Views
Unlock Document

Department
Economics
Course
ECON 101
Professor
Wokia Kumase
Semester
Fall

Description
Nov 1 *****Review practice( technological efficiency and economic efficiency) If you can produce the same amount of output but use less labor or capital(make one constant to analyze),then it is technological inefficient. Labor Capital A 1 10 B 5 8 C 20 4 D 50 1 E 2 8 They both produce Q=100. Then B is technological inefficient,because we can use 3 less units of labor to produce the same Q=100.(compared with E) (i) W Y 1 100 The total cosA: 1001 B:805 C:420 D:150 So the lowest cost is D.. So D is the economic efficient.. (ii) 50 5 The total cost: A:100 B:290 C:1020 D:140 Then the lowest cost is A... So in this case, A is the economic efficient.. Measures of concentration (1) the four-firm concentration ratio The ratio=0 then it is a perfect competitive market The ratio=100 then it is a monopoly market 0< ratio< 60 more competitive 60< ratio <100 it is a oligopoly market (2) the herfindahl-hirschman index(HHI) <1000 -> competitive >1800 -> uncompetitive (nearly monopoly) (3) limitations of a concentration measure (i) the geographical scope of the market (ii) barriers to entry and firm turnover If there is only one producer in the market, then there is little or no competition. If you can enter or quit the market freely, then there is little barrier. (iii) the correspondence between a market and an industry A particular can produce more than one product, so it can be
More Less

Related notes for ECON 101

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit