BSL 212 Lecture Notes - Lecture 3: Inferior Good, Normal Good, Budget Constraint
22 Jun 2016
School
Department
Course
Professor
Document Summary
Monopoly equilibrium; what"s the diff with an effective cartel or monopolistic competition. 18; spigelman"s version; poverty problems & logic (not in text) 20; inequality, progressive/regressive taxes, scandinavian and w. european countries have greater government participation in economy. Game theory; cartel: small firms, key players, homogen. Product: illegal in us, illegal to collude; describe qty. of output and price, restrict output, cartel will create welfare loss. We reg. cartel bc welfare loss and there"s no offsetting benefit. R & d cartels we allow to persist short term welfare loss against encouraging : no innovation w. cartels. Raise standard of living, raise wage: raise value of marg. Prod of labor: human capitol, physical capitol, tech: human: jobs, education, training, well being/health, physical: k, tech: how you organize capitol and labor. 3 sources of financing: foreign aid & investment, domestic savings. Fight it by attracting investment into those areas; tax incentives/credits, locate areas of high poverty would add to k, raise marg.
