All of this now covered in packet:
Revenues (read page 89-93) - page 16-17 of packet
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Production in the long run: returns to scale
Use p 85-88 to do the following tasks:
Costs of production: economic costs
Costs of production in the short run
You will receive packets to cover these objectives.
Paper Chain Factory (adapted from Jason Welker) Introduction: Your classroom is about to turn into a factory that manufactures paper chains (to hold paper anchors for paper boats, of course!). A paper chain is made by taking two long, narrow strips of paper, folding one into a ring and stapling the ends together, then folding the other into a ring and connecting it to the first ring to make a chain. Two loops of paper stapled together make a chain. The longer your chain, the more productive your factory and its workers are. The goal of your paper chain factory, of course, is to make the longest chain possible in a fixed amount of time using a fixed amount of land and capital, with labour as your only variable resource. Resource:
The time for each round of production is limited to one minute. Next: Debrief, discuss results, draw some graphs.... then you will be given a packet with further resources to complete. Or try this short game... Tragedy of the Bunnies Common access resources and the threat to sustainability
Cap and trade schemes: http://www.stuffyoushouldknow.com/podcasts/whats-the-deal-with-carbon-trading/ Use p147-153 Blink/Dorton plus handout from Welker text to fill in document I will give you to address the above objectives.
Asymmetric information
Use the handout/Kognity/textbook to respond to the following: Asymmetric information
Use p 139-141 to do the following:
The meaning of externalities
You will be given a packet of resources that we will use to address these objectives. It is really important to learn to draw and use the graphs properly so practise these. There are lots of real life examples of externalities of production and consumption and it is an excellent topic to do an IA on... you should be reading newspapers looking for good articles! Market failure as a failure to allocate resources efficiently
We will discuss what is meant by market success/allocative efficiency and the conditions for market success before we get started looking at all the ways markets may fail to allocate resources efficiently. https://docs.google.com/a/aisbudapest.org/document/d/1GE4wdZD6mcIJ8wCTiHhGQlve5uzcG5xpa8tiyzAGVVI/edit?usp=sharing Price ceilings: maximum prices
There will be handouts and there will be maths! |
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