TAILIEUCHUNG - Lecture Managerial economics (10/e): Chapter 16 - Christopher R. Thomas, S. Charles Maurice

In this chapter we showed you why economists and policymakers believe well-functioning competitive markets can lead to economically efficient levels of production and consumption in equilibrium. This chapter examined six important reasons for market failure and suggested some ways that government policymakers may remedy these failures. | Chapter 16: Government Regulation of Business McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. Market Competition & Social Economic Efficiency Social economic efficiency Exists when the goods & services that society desires are produced & consumed with no waste from inefficiency Two efficiency conditions must be met Productive efficiency Allocative efficiency Productive Efficiency Exists when suppliers produce goods & services at the lowest possible total cost to society Occurs when firms operate along their expansion paths in both the short-run & long-run Allocative Efficiency Requires businesses to supply optimal amounts of all goods & services demanded by society And these units must be rationed to individuals who place the highest value on consuming them Optimal level of output is reached when the MB of another unit to consumers just equals the MC to society of producing another unit Where P = MC (marginal-cost-pricing) Social

• Quản trị kinh doanh
• Managerial economics
• Lecture Managerial economics
• Microeconomic theory
• Economic theory
• Government regulation of business
• Social economic efficiency
• Market interactions
• Fundamentals of managerial economics
• Marginal analysis
• Marginal benefit
• Economic principles
• Kinh tế học quản lý
• Price discrimination
• Monopolistic competition
• Oligopoly games
• Traditional oligopoly models
• Capital market
• Labour market
• Economic equations
• Economic applications
• Economic applications of derivatives
• Economic application
• Multi variable functions
• Constrained optimization
• Scatter diagram
• Forms of money
• Monetary policy
• Perfect competition
• Demand function
• Supply function
• Quantitative demand analysis
• Theory of individual behavior
• Demand estimation
• Production function
• Costs of production
• Organizing production