Presentation on theme: "Industrial Economics (Econ3400) Week 1 July 24, 2008 Room 323, Bldg 3 Semester 2, 2008 Instructor: Dr Shino Takayama."— Presentation transcript:
Industrial Economics (Econ3400) Week 1 July 24, 2008 Room 323, Bldg 3 Semester 2, 2008 Instructor: Dr Shino Takayama
Agenda for Week 1 Course Profile (Syllabus) Introduction to I.O. Profit Maximization & Perfect Competition Efficiency
The Instructor ? Name: Shino (McLennan) Takayama Hometown: Osaka/Kyoto, Japan Ph.D in Economics from U MN, USA Arrival in AU: September, 2005 Moved from Sydney Uni. Financial Economics, Game Theory, Public Economics Website: http://www.shino.info/ Email: email@example.com Office: 617 @Colin Clark Office Hour: 11:00 – 12:00, Mondays
Econ3400 Industrial Economics Textbook: http://homepages.ucalgary.ca/~jrc hurch/page4/page5/files/PostedIOS A.pdf Course Description: The main objective of the lectures is to present applied topics in industrial economics.
Introduction to I.O. I.O. (Industrial Organization) is a study about Market structure/organization Relationship with Firms Behavior Methodology Structure Conduct Performance Game Theory What we study: Strategy Based Approach
Profit Maximization Firms Objective Profit Maximization Firms Optimal Choice MP(q) = MR(q) – MC(q) MR(q*) = MC(q*) If MR > MC, expands output If MC > MR, reduce output
Perfect Competition The 4 assumptions 1. Many Buyers and Sellers 2. Homogeneity of Output 3. Perfect Information 4. Free Entry or Exit 1 – 3 : Price Takers
From a Single Firm to Market Profit-Maximizing Choice p = MC(q*) Market Supply = sum of individual supply(p) Market Equilibrium Supply(p) = Demand(p)
Efficiency Measures of Gains from Trade Consumer Surplus Producer Surplus Total Surplus Pareto Optimality If it is not possible to make one person better off without making another worse off.
Your consent to our cookies if you continue to use this website.