ECON102 Chapter Notes - Chapter 5: Demand Curve, Marginal Utility, Marginal Cost
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ECON102 Full Course Notes
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Individual demand and market demand: the relationship b/w the price of a good and the quantity demanded by one person is individual demand, the relationship b/w . Lisa"s consumer surplus is . 50: (1. 5)(30) / 2, nick"s consumer surplus is . 50, (0. 5)(10) / 2. Supply and marginal cost: firms are in business to generate profit, to make profit, firms must sell their output for a price that exceeds the cost of production, firms distinguish between cost and price. Individual supply and market supply: the relationship between the price of a good and the quantity supplied by one producer is individual supply, the relationship between the . Efficiency of competitive equilibrium: when production is, In equilibrium, the quantity demanded equals the quantity supplied: less than equilibrium quantity, msb > msc, greater than equilibrium quantity, msc > msb, equal to the equilibrium quantity, msc = msb.