CGS 2060 Lecture Notes - Lecture 5: Shortage, Equilibrium Point, Affine Transformation
16 Oct 2017
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Textbook: hubbard and o brien microeconomics 6th edition. Grades: hw 10, 3 exams: 30 , exam 1 9/20 (chapters 1-4, exam 2: 10/25 (chapter 6,11,12, exam 3: 11/27 (chapters 13,14, 15) Homework questions will be similar to exam questions. Inputs (factors of production), they are scarce which means firms cannot produce unlimited output. Firms put the inputs through their production process and produce output (final product) Because of scarcity firms have to make trade-offs in the production process. Production schedule- a table that shows all production plans for a firm. Ppf- shows the maximum combination of y1 and y2 the firm can produce, with its current inputs. All production plans on the frontier are said to be productively efficient. Productive efficiency- firm is using their inputs to maximum capacity at the lowest cost possible. Productive plans to the left of the ppf means the population is insufficient. Productive plans to the right of the ppf means the population is efficient.
