Microeconomics 9
The Analysis of Competitive Markets
The Analysis of Competitive Markets
Kartei Details
| Karten | 11 |
|---|---|
| Sprache | English |
| Kategorie | VWL |
| Stufe | Universität |
| Erstellt / Aktualisiert | 17.11.2012 / 13.03.2015 |
| Lizenzierung | Kein Urheberrechtsschutz (CC0) |
| Weblink |
https://card2brain.ch/box/microeconomics_9
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welfare effects
Gains and losses to consumers and producers.
deadweight loss
Net loss of total (consumer plus producer) surplus
welfare benefit
consumer + producer surplus measure the welfare benefit of a competitive market
economic efficiency
Maximization of aggregate consumer and producer surplus
market failure
Situation in which an unregulated competitive market is inefficient because prices fail to provide proper signals to consumers and producers.
2 reasons for market failure
- Externalities (Action taken by prod. or cons. which affects other parties but isn't in the market price)
- Lack of information
price support
Price set by government above free-market level and maintained by governmental purchases of excess supply.
import quota
Limit on the quantity of a good that can be imported.
