ECON 103 Study Guide - Quiz Guide: Ambivalence, Marginal Cost, 3E
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ECON 103 Full Course Notes
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Spring 2018 your section time and day: friday 2:30~3:20pm. Class 8, quiz 6: to be done at home and handed in to ta section. Note that you may work with one other person from your ta section. My three nieces, ages 14, 12, and 6, live together. The older sisters each suffer of brain damage every night from the experience; their step-mother (tula"s mom) used to have mixed feelings but she would now pay. Would you expect this to happen? (remember, tula owns her own phone. ) How could the older sisters and the mother make it happen: for market to be efficient, marginal cost and marginal benefit should be equal. , that is price and marginal cost should be equal. In pc, firms produce quantity at which p=marginal cost ,so it produces efficient outcome. But monopoly produces output at p>marginal cost ,that it charges price greater than mc and produces output less than pc output.
