| III. Optimization and the usefulness of marginal analysis | |
| Dates: | Sep.22-Oct.13 |
| Readings: | Mankiw, Chapter 14, selected pages from Chapter 15 |
| Deadlines: | Oct.18: Problem set 3 due
QWizPlus unit III due |
| Subtopic: | IIIA. Maximizing profits in competitive markets |
| Readings: | Mankiw, Chapter 14 |
| Day 12: | IIIA1: The competitive market environment |
| Handouts: | Demand and revenue in competitive markets |
| Day 13: | IIIA2: The total value approach to choosing output |
| Handouts: | Profit maximization: Worksheet 1 |
| Day 16: | IIIA3: The marginal value approach to choosing output |
| Handouts: | Profit maximization:
Worksheet 2 Operate or shut down? |
| Day 17: | IIIA4: The geometry of profit maximization |
| Handouts: | Firm profit geometry
The geometry of reveues, costs and profits |
| Day 18: | IIIB: Maximizing profits under monopoly |
| Readings: | Mankiw, Chapter 15, pp.303-318 |
| Handouts: | Demand conditions for firms with market power |
| IIIC: Maximizing consumer utility (satisfaction) | |
| Handouts: | Maximizing consumer utility (satisfaction) |
| Day 19: | Workshop: The geometry of revenue, costs and profits |
| Handouts: | Pre-Lab Checklist: Workshop: Geometry of firm costs and profits: |