Economics 2150A/B Lecture Notes - Lecture 7: Oligopoly, Statics, Comparative Statics
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3 Mar 2014
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ECON 2150A/B Full Course Notes
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Homework 2: will be posted on tuesday, covers chapters 11 and part of 12, due next wed. feb. 5. Midterm: will cover chapters 9, 10, 11 and 12, no math problems from chapter 9, will be in class on monday feb. 10. Tr1 = area i + ii: to increase q sold to 5 million . Tr2 = ii + iii: mr = Q: change in tr = tr2 tr1 = area(iii + ii) area(ii + i) = area iii i, area ii = increase in tr from marginal units. Note that dp dq is negative because to decrease quantity, we have to decrease price. Your book doesn"t use derivatives, it uses: mr = p + q( P is the increase in tr from selling the marginal units. Q is the quantity you sold previously. This expression tells you it is the decrease in tr from the sale of existing units (inframarginal units) at a lower price.
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