P a a - bR Rt a/b R Figure 15.1 The non-renewable resource demand function for the two-period model.

Slides:



Advertisements
Similar presentations
Calculate TR and Marginal Revenue
Advertisements

Pricing To Capture Surplus Value. Capturing Surplus: By applying the price discrimination. Price discrimination: the practice of charging consumers different.
Competition In Imperfect Markets. Profit Maximization By A Monopolist The monopolist must take account of the market demand curve: - the higher the price.
Different Types of Market Structures
Slide 1 Insert your own content. Slide 2 Insert your own content.
Chapter 3 Demand and Behavior in Markets. Copyright © 2001 Addison Wesley LongmanSlide 3- 2 Figure 3.1 Optimal Consumption Bundle.
Chapter 10 Natural Monopoly and the Economics of Regulation.
Copyright © 2002 Pearson Education, Inc. Slide 1.
Chapter 19 Input Markets and the Origins of Class Conflict.
Copyright © 2002 Pearson Education, Inc. Slide 1.
and 6.855J Cycle Canceling Algorithm. 2 A minimum cost flow problem , $4 20, $1 20, $2 25, $2 25, $5 20, $6 30, $
Copyright 2008 The McGraw-Hill Companies 18-1 Price Elasticity of Demand Total Revenue Test Elasticity on a Linear Demand Curve Price Elasticity and the.
0 - 0.
Addition Facts
Market Structures. Perfect Competition Characteristics –Many sellers with identical goods and services – goods are perfect substitutes for each other.
Environmental Economics 2
1 Market Demand from Individual Demand. 2 In this section we want to think about market demand as the result of adding up demands from many individuals.
Price Discrimination: Capturing CS
Marketsslide 1 PRICE DETERMINATION IN MARKETS The market demand curve shows the amount demanded at every price. The market supply curve shows the amount.
Price Discrimination A monopoly engages in price discrimination if it is able to sell otherwise identical units of output at different prices Whether a.
Monopoly. Assumptions One seller and many buyers No close substitutes High barriers to entry.
Chapter foundations of Chapter M A R K E T I N G Understanding Pricing 13.
International Economics: Theory, Application, and Policy, Ch. 7;  Charles van Marrewijk, Figure 7.1 Bertil Ohlin ( )
5.9 + = 10 a)3.6 b)4.1 c)5.3 Question 1: Good Answer!! Well Done!! = 10 Question 1:
Fossil fuel stock Fossil fuel extraction Production Utility Welfare Pollution flows Consumption Pollution stocks Clean-up or defensive expenditure Environmental.
Unit 3: Aggregate Demand and Supply and Fiscal Policy
Addition 1’s to 20.
7 TOPICS FOR FURTHER STUDY. Copyright © 2006 Thomson Learning 21 The Theory of Consumer Choice.
Test B, 100 Subtraction Facts
Exercises Chapters Do you know … which market structure produces the highest output? the lowest output? which market structure charges the lowest.
Chapter 5 Some Applications of Consumer Demand, and Welfare Analysis.
ERE6: Non-Renewable Resources
Lecture 9 The efficient and optimal use of non – renewable resources.
Optimal resource extraction: non-renewable resources
Monopoly Demand Curve Chapter The Demand Curve Facing a Monopoly Firm  In any market, the industry demand curve is downward- sloping. This is the.
Natural Resource Economics: An Overview. 2 period model MUC rises at rate of discount In period 2, MUC 1+r as large as in period 1 Suggests that efficiency.
3 SUPPLY AND DEMAND II: MARKETS AND WELFARE. Copyright © 2004 South-Western 7 Consumers, Producers, and the Efficiency of Markets.
ERE5: Efficient and optimal use of environmental resources
The Market Forces of Supply and Demand
Figure 8.2 How a Competitive Firm Maximizes Profit
Which curve is the demand curve? –Curve 1 Which curve is the marginal revenue curve? –Curve 2 Why? –For a monopoly to sell more, they must decrease price,
L06 Demand. u Model of choice u parameters u Example 1: Cobb Douglass Review.
Copyright © 2006 Thomson Learning 5 Elasticity and Its Applications.
ELASTICITY Chapter – 4/2 Hanan What is Elasticity?  Elasticity refers to the degree of responsiveness in demand in relation to changes in price.
Norwood and Lusk: Agricultural Marketing & Price Analysis © 2008 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Chapter 2 Basic.
Copyright © 2006 Thomson Learning 15 Monopoly. Figure 1 Economies of Scale as a Cause of Monopoly Copyright © 2004 South-Western Quantity of Output Average.
PART 3 MICROECONOMICS OF PRODUCT MARKETS Prepared by Dr. Amy Peng Ryerson University © 2013 McGraw-Hill Ryerson Ltd.
Demand. What is Demand? The quantity of particular goods or services that the market (or consumer) is willing to buy The quantity of particular goods.
Chapter 6 Combining Supply and Demand. Equilibrium- where the supply and demand curves cross. Equilibrium determines the price and the quantity to be.
Equation numbering Please note that all equation numbers refer to Perman et al 2nd edition. If you are using 3rd edition, simply replace 7 by 14. So,
Factors the Affect Demand Unit 4.2. More About the Demand Curve Law of Diminishing Marginal Utility – The second item will not give as much satisfaction.
MARKETS AND COMPETITION A market is a group of buyers and sellers of a particular good or service. The terms supply and demand refer to the behavior of.
Monopoly.
YLE13: Hotelling model Marko Lindroos.
P D O Q Q (a) Kinked demand curve for an oligopolistic firm
L06 Demand.
Environmental and Natural Resource Economics 3rd ed. Jonathan M
Advanced Pricing - 1 Managerial Economics Kyle Anderson.
L06 Demand.
15 Monopoly.
L06 Demand.
L06 Demand.
L06 Demand.
Economics and Business
Long-Run Outcomes in Perfect Competition
Monopoly Power Measuring Monopoly Power
© 2007 Thomson South-Western
Monopoly (Part 2) Chapter 21.
L06 Demand.
Presentation transcript:

P a a - bR Rt a/b R Figure 15.1 The non-renewable resource demand function for the two-period model.

P K U(R) = shaded area Ke-aR R Quantity of resource extracted, R R Quantity of resource extracted, R Figure 15.2 A resource demand curve, and the total utility from consuming a particular quantity of the resource.

Figure 15.3 Net price Pt PT =K P0 Pt 45° T R R0 Time t Rt Area = Demand P0 Pt 45° T R R0 Time t Rt Area = = total resource stock T Time t

Figure 15.4 Net price Pt PT = PTM = K P0M P0 R R0 R0M T TM Time t T Perfect competition PT = PTM = K Demand P0M Monopoly P0 R R0 R0M T TM Time t T Area = TM 45° Time t

P A C B K P0 Time T Figure 15.5 The effect of an increase in the interest rate on the optimal price of the non-renewable resource.

Figure 15.6 Net price Pt K P0 P0/ R R0/ R0 T/ T Time t T/ T 45° Time t Demand P0 P0/ R R0/ R0 T/ T Time t T/ T 45° Time t

Figure 15.7 Net price Pt K P0 P0/ R R0/ R0 T T/ Time t T T/ 45° Time t Demand P0 P0/ R R0/ R0 T T/ Time t T T/ 45° Time t

Figure 15.8 Pt t Net price path with no change in stocks Net price path with frequent new discoveries t

Figure 15.9 Net price Pt K P0/ P0 R R0/ R0 T/ T Time t T/ T 45° Time t D/ P0 D R R0/ R0 T/ T Time t T/ T 45° Time t

Figure 15.10 (a) Net price Pt K PB P0 P0/ R* R R0/ R0 T/ T Time t T/ T Backstop price fall PB P0 P0/ D R* R R0/ R0 T/ T Time t T/ T 45° Time t

Figure 15.10 (b) Net price Pt K PB P0 P0/ R* R R0/ R0 T/ T Time t T/  Backstop price fall PB P0 P0/ D R* R R0/ R0 T/ T Time t T/  T 45° Time t

Resource price K T Figure 15.11(a) Time Original net price New gross price Original gross price New net price cL cH T Figure 15.11(a) Time

Resource price K T T/ Figure 15.11(b) Time Original gross price Original net price New gross price New net price T T/ Figure 15.11(b) Time

Figure 15.12 Net price Pt K P0/ P0 R R0 R0/ T T/ Time t T T/ 45° Original gross price path K New gross price path P0/ P0 R R0 R0/ T T/ Time t T T/ 45° Time t

Feedback: Privacy Policy Feedback
Do Not Sell My Personal Information
About project: SlidePlayer Terms of Service

© 2024 SlidePlayer.com Inc. All rights reserved.