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Course Description

Market equilibrium is desirable because it is efficient; the gains from trade are maximized. However, there are some circumstances in which the market equilibrium is not efficient, so where does the supply curve come from? In this lesson, you will develop a model of production using a single variable input. From our model of production, you will be able to derive cost functions. And from the cost functions, we will be able to derive a profit maximizing rule for profit maximizing firms. It is from the profit maximizing rule, in conjunction with a marginal cost curve, that you will be able to derive a supply curve.

Benefits to the Learner

  • Appraise circumstances in which market equilibrium is not efficient
  • Explore the market failures of externalities, public goods, and common access goods
  • Develop a model of production using a single variable input
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Type
self-paced (non-instructor led)
Dates
Feb 24, 2020 to Dec 31, 2030
Total Number of Hours
1.0
Course Fee(s)
Regular Price $0.00
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