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Continuously,
Quantity of Apple
10 9
a b
6
c
2
d
0
67
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12 13
Quantity of Apple Pie
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Assumptions inside the Production possibility Frontier (PPF)
Economic is an academic discipline of social science that provides discourse about the allocation of limited resources in economy to produce goods and services to satisfy unlimited wants Economics, indeed, is a broad discipline itself. Microeconomics and macroeconomics are two separated but interrelated branches of economics. There are many more fields that each served to focus on a particular area of study.
Factors of production is fixed; labour and capital and no technology development
Agent involved is firm/producer who face economic problems and questions
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Thus, it is obvious that opportunity cost has increased from 1 to 2 units What should the opportunity cost should be measured in real term than in money term?
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If the firm produces 6 units of apple and 12 units of apple pie wants to increase the production of apple pie by one unit to the 13th unit. It has to forgo 2 units of apple so that resources can be shifted to produce the additional apple pie; Opportunity Cost is thus 2.
The concept of increasing opportunity applied. Producers are rational. Normal good: Apple and Apple pie At a particular price, place and time (PPPT)
Applied Statistics
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Microeconomics Focuses on the study of choice and decision making for an individual household and firm, while macroeconomics studies the behaviour of the economic as a whole. There is a few principles about microeconomics in some books, while more in others
Continuously,
Basically, the general principles are:
Scarcity of resources Opportunity costs Increasing opportunity cost Real Opportunity Cost Real Opportunity cost and inefficiency
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Continuously,
If the firm produces 10 units of apple and 6 units of apple pie wants to increase the production of apple pie by one unit to the 7th unit. It has to forgo 1 unit of apple so that resources can be shifted to produce the additional apple pie; Opportunity Cost is thus 1.Βιβλιοθήκη Continuously,
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Mathematical Economics Econometrics
Week 1: Microeconomics II
Topic: Microeconomics and Application
Outline
Essential Microeconomics Principles Uses of Microeconomics Application 1
Subtopic 1: Economic Principles