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economics R13-R15 - Coggle Diagram
economics R13-R15
firm and market structures R13
perfect competitive
price taker
good substitute
horizontal demand
perfect elastic
downward slope demand for the market
P=MR=MC=D=AR
short run
max profit
P=MC
shutdown price
P=AVC minimum
supply curve
supply firm of firm
mC curve above AVC minimum
supply curve of market
horizontal summation of individual curves
long run
max profit
P=MC=MR=ATC, pai max=0
free to enter and exit
monopolistic competition
differentiated product
brand recognition
advertising has benefit
short run
profit max
P>MR=MC
downward demand curve
high elasticity
long run
profit max
P=ATC
MR=MC
pai max=0
free to enter and exit
oligopoly
very few firms
products can be similar or differentiated
4 models
kinked demand curve model
kind is the equilibrium
cournot model (2 firms)
firms production quantity will change until they are equal
nash equilibrium model
stackelberg dominant firm model
dominant firm
competitive firm
decrease of price by CF will lead to increase quantity of DF in the end
monopoly
single price
profit max
P>MR=MC
important formula to calculate MR
DWL
price discrimination
higher output
higher profit
lower DWL
first degree price discrimination
second degree price discrimination
third degree price discrimination
natural monopoly
low and constant MC
AC falls over the relevant output range
ways to solve DWL
marginal cost pricing
DWL =0
fails
average cost pricing
P=AC
increasing output and decrease price
DWL decrease but not 0
ensure normal profit of firm
supply curves in different market
MC curve in perfect competition market
no supply curve in other markets
concentration measure
N-firm concentration ratio
advantages
simple calculation
disadvantages
insensitive to merger companies
potential entrant threat is ignored
Herfindahl Hireshchman index
advantages
sensitive to merger companies
disadvantages
potential entrant threat is ignored
aggregate output, prices and economics growth (R14)
GDP
definition
market value
final good & services produced
within a country
in a given year
3 approaches
expenditure approach
GDP= C+I+G+NX
income approach
formula
national income formula
capital consumption allowance
statistical discrepancy
sum of value added approach
4 types of GDP
nominal GDP
real GDP
GDP deflator
Per-capita real GDP
aggregate demand
downward slope
shifters
household wealth
consumer and business expectations
capacity utilization
monetary policy
growth in global economy
exchange rate
fiscal policy
aggregate supply
3 types of AS curve
VSRAS
SRAS
LRAS
vertical at potential GDP
shifters
input price
technology
resources amount
macroeconomic equilibrium and growth
long run equlibrium
recessionary gap
stagflation
inflationary gap
sources of economic growth
labor supply
human capital
physical capital stock
technology
natural resources
sustainability of economic growth
potential GDP formula
neoclassical, solow model
IS curve
downward slope
equilibrium in goods market
Y=AE=C+I+G+X-M
shifters
G
X
T
M
I
C
LM curve
upward slope
shifters
equilibrium in money market
relationship b/w real interest rate and real income
Business cycle (R15)
business cycle
inventory-sales ratio
reoccuring
4 stages
trough
expansion
peak
contraction/recession
utilization of labor and physical capital
causes of business cycles
需要政府干预
Keynesian school
The New Keynesian school
不应该有干预
Neoclassical school
Monetarist school
Austrian school
New Classical school
inflation and indicators
inflation
hyperinflation
disinflation
deflation
headline inflation
core inflation
demand pull inflation
cost push inflation
indexes
consumer price index (CPI)
producer price index (PPI)
Laspeyres index
fisher index
laspeyres index
paasche index
economic indicators
leading indicators
coincident indicators
lagging indicators
working age population 15+
labor force
unemployed
3 categories
frictional unemployement
structural unemployement
cyclical unemployement
unemployment rate
labor force participation rate/activity ratio/participation ratio
employed
underemployed
not labor force
discouraged workers