TAILIEUCHUNG - Lecture Principles of Microeconomics: Chapter 15 - James D. Miller

Chapter 15 - Challenge to market effectiveness 5: Incomplete information. After reading this chapter, you should be able to answer the following questions: How does incomplete information affect customers? How can brand names, money-back guarantee and eBay ratings reduce the effects of incomplete information? What is adverse selection? How does adverse selection manifest itself in the used car market? | Chapter 15 Challenge To Market Effectiveness 5: Incomplete Information McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All Rights Reserved. Learning Objectives How does incomplete information affect customers? How can brand names, money-back guarantee and eBay ratings reduce the effects of incomplete information? What is adverse selection? How does adverse selection manifest itself in the used car market? What is agency cost? How do consumers face agency costs? How does incomplete information about potential employees affect firms? How does incomplete information affect health insurance firms? 15- Incomplete Information If customers have incomplete information about products’ qualities, customers don’t always get what they want. Businesses sometimes use uncertainty to cheat customers. Product uncertainty harms firms as well as consumers. Consumers pay less for a product the less sure they are of the product’s safety and reliability. 15- Brand .

• Kinh tế học
• Principles of Microeconomics
• Lecture Principles of Microeconomics
• Incomplete information
• Market effectiveness
• Brand names
• Money back guarantee
• Ten principles of economics
• Scarce resources
• Scarcity implies choice
• Choice implies cost
• Thinking like an economist
• Economic models
• Circular flow diagram
• Production possibilities frontier
• The gains from trade
• Production possibilities
• Comparative advantage
• Absolute advantage
• Market forces
• Supply and demand
• Market economies
• Competitive markets
• Price elasticity of demand
• Price elasticity
• Midpoint method
• Demand curves
• Controls on prices
• Price ceiling
• Price floor
• Market outcomes
• Market failures
• Negative externalities
• Positive externalities
• Market inefficiency
• Public goods
• Common resources
• Types of goods
• Cost benefit analysis
• Tax system
• Federal government
• Marginal tax rate
• Budget surplus
• Costs of production
• Total revenue
• Total cost
• Opportunity costs
• Firms in competitive markets
• Average revenue
• Marginal revenue
• Sunk costs
• Monopoly resources
• Government created monopolies
• Natural monopolies
• Monopoly’s revenue
• Monopolistic competition
• Nash equilibrium
• Equilibrium for oligopoly
• Game theory
• Long run equilibrium
• Perfect competition
• Production possibility frontier
• Opportunity cost
• Rational people
• Indirect effects
• Law of demand
• Factors change demand
• Law of supply
• Market demand
• Demand intersect
• Demand determine prices
• Change in demand
• Change in supply
• Elastic demand curve
• Policy analysis with supply
• Policy analysis with demand
• Wealth creation
• Production cost
• Total surplus
• International trade
• Additional benefits of trade
• Average costs
• Break even price
• Increasing marginal costs
• Long run analysis
• Firms profit graphically
• Accounting profit
• Monopolist pricing
• Price discrimination
• Antitrust laws
• Disruptive innovation in oligopolies
• Predatory pricing