ECO 2144 Lecture Notes - Lecture 1: Perfect Competition, Market Power
11 Sep 2016
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Goal of economics - to better understand how the economy works. Not about predicting, it"s understanding - to build a better society: how should we build our policies to adjust, ex: goal of the government, potential tool, impact. Help the poor, minimum wage, ? (use economic models to understand) Goal/purpose of this course, eco2144: provide a thorough exploration of microeconomic models (in particuliar, perfect competition) A few really hard questions, with a twist we have not seen not straightforward. Real life is too complexe to fully understand. Models are a simpli ed version of real life. A model is relevant if the assumptions are relevant (close enough: ex: a road map. Whenever you create an economic model, always have assumptions. Assumptions are key to deciding whether or not a model is. Many buyers (buyers have no market power) Many sellers and identical products (sellers have no market power)
