MC = MR Competition

Every semester the question gets asked. Why would a firm produce a good when the MC=MR? It wouldn't make a difference to profit, so why is there an equal sign in the equation? Generally students understand that when MCMR you should decrease output. But why produce the good when they are EXACTLY equal?


This year, I felt my answer to that was just as unsatisfying as all other semesters. I've tried to explain this many ways, and I've concluded the issue centers around mathematics. Why don't you give it a try. The best answer will get 2 points extra credit towards your midterm.

Here are the notes on why taxes are more efficient than standards.

Next Midterm

We will have our second midterm Nov. 9 and Nov. 10, depending on when your class meets. I will announce the exact topics closer to the exam date. You should be doing the HW questions as always.

Income inequality

Here is a link to some research indicating that income gains have not been spread out equally in society.

Homework Answers

A little late, but here are some answers to help you.

Chapter 5

Chapter 6

Chapter 7

Chapter 22

Chapter 23

Just because I want to know

Someone in my MACRO class asked why in the unemployment statistics, Asians are reported as "not seasonally adjusted." Every semester a student asked this, and every year I always say I'll find out. Someone please find out why the unemployment statistics are reported this way. Here's the link to the most recent unemployment data http://www.bls.gov/news.release/empsit.a.htm
happy searching

Office hours cancelled on Thurs 10/20

For those of you who haven't seen the signs, the campus is having an earthquake drill on Thursday, 10/20, right in the middle of office hours. We will have to evacuate the building for some time so I'm cancelling office hours for that day.

Kuo

Quiz next week

Reminder: you have a quiz either Monday 10/17 or Tuesday 10/18 depending on your particular class.

Bring a green scantron with essay.

Kuo

Midterm Exam

Here are the questions on the first midterm, along with the answers. Please review your answers

Micro

Macro

And here is the handout on your writing assignment I discussed in class. If you want to discuss how you can write a more thoughtful and more organized essay, it would be best to try to schedule an individual appointment outside of office hours.