ECON 1012/1013
Macroeconomics Summaries
Four Market Summary (Perfect Competition, Monopolistic
Competition, Monopoly & Oligopoly)
DISCLAIMER:
These summaries are prepared with the intent to closely align with the content of the specified textbook. Full credit and acknowledgment are given to the authors and publishers of the
original textbook for the material on which these summaries are based. All images are taken directly from:
Parkin, M. et al. (2020) Economics: Global and Southern African perspectives. 3rd edn. Cape Town, Western Cape: Pearson South Africa.
While every effort has been made to ensure accuracy, the author of these summaries cannot guarantee that the information contained herein is entirely free from errors or omissions. As
such, no liability is accepted for any inaccuracies, errors, or any resultant consequences arising from the use of this material.
Users are encouraged to refer to the original textbook for comprehensive understanding and to verify any information. Any reliance you place on the content of these summaries is
strictly at your own risk.
Be advised that the distribution of these notes via any platform, including but not limited to email, WhatsApp, AirDrop, or any other digital means, leaves an identifiable trail.
Unauthorized distribution or reproduction of these materials may be considered a violation of plagiarism and copyright laws in South Africa. Perpetrators found involved in such actions
are liable to be prosecuted under the relevant legal provisions. Exercise caution and respect intellectual property rights.
Unauthorised dissemination/distribution of this document is strictly prohibited.
By downloading this document, the purchaser acknowledges and agrees to the following terms:
The purchaser accepts full responsibility to refrain from distributing, sharing, or reproducing this document, in whole or in part, without the express written consent of the author. Any
unauthorized distribution is strictly prohibited.
Should the purchaser be found distributing or enabling the distribution of this document, they acknowledge that they may be subject to legal action. The author reserves the right to take
legal recourse, including but not limited to initiating court proceedings, against any individual or entity found in violation of these terms.
Your download and use of this document indicate your acceptance of these terms and your understanding of the potential legal consequences of non-compliance.
, PART 3 :
CHAPTER & Unin and bemand
108
DIFFERENT POINTS ALONG
BUDGET CONSTRAINT ARE
CONSUMPTION POSSIBILITIES
8
6
&
⑳
AFFORDABLE
·
ALL THINGS YOU CAN AFFORD TO BUY AFFORDABLE UNAFFORDABLE
4 ⑧
· ON LINE = USING ALL
LIMITED BY INCOME + PRICES ONE MUST PAY 2 ⑧ INCOME
BUDGET LINE
·
CONSUMER'S BUDGET LINE ⑧
0 ,2 3 4 3
-
LIMIT TO CONSUMPTION POSSIBILITIES movies (PER MONTH
-MARKS BOUNDARY BETWEEN COMBINATION Of GOODS + SERVICES HOUSEHOLD CAN AFFORD TO BUY THOSE IT CAN'T
-
CONSUMPTION POSSIBILITIES LIMITED BY INCOME
CONSUMER'S
-
BUDGET LINE CONSTRAINS CHOICES : MARKS BOUNDARY BETWEEN WHAT IS AFFORDABLE +
WHAT IS UNAFFORDABLE
·
CHANGES IN CONSUMPTION POSSIBILITIES
-
W WHEN INCOME/PRICES &
-
RISE IN INCOME SHIFTS BUDGET LINE OUTWARD BUT LEAVES SLOPE UNCHANGED
-
BUDGET LINE SHOWS WHAT IS POSSIBLE +PREFERENCES DETERMINE CHOICE CONSUMER MAKES
PREFERENCES
·
DESCRIPTION Of LIKES + DISLIKES
·
DESCRIBE PREFERENCES IN CONCEPT Of MARGINAL BENEFIT MARGINAL BENEFIT CURUE
·
MBC IS ALSO DEMAND CURVE
·
.. GOAL OF THEORY Of CONSUMER CHOICE IS TO DERIVE DEMAND CURVE FROM DEEPER ACCOUNT Of How
CONSUMERS MAKE TUEIR BUYING PLANS : EXPLAIN WHAT DETERMINES DEMAND +MB
·
ACHIEVE THIS GOAL VIA DEEPER WAY OF DESCRIBING PREFERENCES
1 APPROACH USES IDEA Of UTILITY
·
UTILITY =
BENEFIT/SATISFACTION PERSON GETS FROM CONSUMPTION Of GOODS + SERVICES
· TOTAL BENEFIT PERSON GETS FROM CONSUMPTION Of All DIff GOODS
TOTAL UTILITY + SERVICES
-
DEPENDS ON LEVEL Of CONSUMPTION
-
MORE CONSUMPTION GENERALLY GIVES MORE UTILITY
· CHANGE IN TOTAL UTILITY THAT RESULTS FROM A ONE-UNIT INCREASE IN QUANTITY Of GOOD CONSUMED
MARGINAL UTILITY
QUANTITY OF GOOD CONSUMED &
-
MU IS POSITIVE BUT DIMINISHES AS
-
POSITIVE MU
ALL THINGS PEOPLE ENJOY +WANT MORE Of
·
·
Tu AS QUANTITY CONSUMED
POLLUTED AIR
·
SOME THINGS +ACTIVITIES :
NEGATIVE MU :. LOWER TO EC .
-
DIMINISHING Mr
↓ AS CONSUMPTION
·
TENDENCY FOR MU TO Of GOOD =
PRINCIPLE Of DIMINISHING Mr
Macroeconomics Summaries
Four Market Summary (Perfect Competition, Monopolistic
Competition, Monopoly & Oligopoly)
DISCLAIMER:
These summaries are prepared with the intent to closely align with the content of the specified textbook. Full credit and acknowledgment are given to the authors and publishers of the
original textbook for the material on which these summaries are based. All images are taken directly from:
Parkin, M. et al. (2020) Economics: Global and Southern African perspectives. 3rd edn. Cape Town, Western Cape: Pearson South Africa.
While every effort has been made to ensure accuracy, the author of these summaries cannot guarantee that the information contained herein is entirely free from errors or omissions. As
such, no liability is accepted for any inaccuracies, errors, or any resultant consequences arising from the use of this material.
Users are encouraged to refer to the original textbook for comprehensive understanding and to verify any information. Any reliance you place on the content of these summaries is
strictly at your own risk.
Be advised that the distribution of these notes via any platform, including but not limited to email, WhatsApp, AirDrop, or any other digital means, leaves an identifiable trail.
Unauthorized distribution or reproduction of these materials may be considered a violation of plagiarism and copyright laws in South Africa. Perpetrators found involved in such actions
are liable to be prosecuted under the relevant legal provisions. Exercise caution and respect intellectual property rights.
Unauthorised dissemination/distribution of this document is strictly prohibited.
By downloading this document, the purchaser acknowledges and agrees to the following terms:
The purchaser accepts full responsibility to refrain from distributing, sharing, or reproducing this document, in whole or in part, without the express written consent of the author. Any
unauthorized distribution is strictly prohibited.
Should the purchaser be found distributing or enabling the distribution of this document, they acknowledge that they may be subject to legal action. The author reserves the right to take
legal recourse, including but not limited to initiating court proceedings, against any individual or entity found in violation of these terms.
Your download and use of this document indicate your acceptance of these terms and your understanding of the potential legal consequences of non-compliance.
, PART 3 :
CHAPTER & Unin and bemand
108
DIFFERENT POINTS ALONG
BUDGET CONSTRAINT ARE
CONSUMPTION POSSIBILITIES
8
6
&
⑳
AFFORDABLE
·
ALL THINGS YOU CAN AFFORD TO BUY AFFORDABLE UNAFFORDABLE
4 ⑧
· ON LINE = USING ALL
LIMITED BY INCOME + PRICES ONE MUST PAY 2 ⑧ INCOME
BUDGET LINE
·
CONSUMER'S BUDGET LINE ⑧
0 ,2 3 4 3
-
LIMIT TO CONSUMPTION POSSIBILITIES movies (PER MONTH
-MARKS BOUNDARY BETWEEN COMBINATION Of GOODS + SERVICES HOUSEHOLD CAN AFFORD TO BUY THOSE IT CAN'T
-
CONSUMPTION POSSIBILITIES LIMITED BY INCOME
CONSUMER'S
-
BUDGET LINE CONSTRAINS CHOICES : MARKS BOUNDARY BETWEEN WHAT IS AFFORDABLE +
WHAT IS UNAFFORDABLE
·
CHANGES IN CONSUMPTION POSSIBILITIES
-
W WHEN INCOME/PRICES &
-
RISE IN INCOME SHIFTS BUDGET LINE OUTWARD BUT LEAVES SLOPE UNCHANGED
-
BUDGET LINE SHOWS WHAT IS POSSIBLE +PREFERENCES DETERMINE CHOICE CONSUMER MAKES
PREFERENCES
·
DESCRIPTION Of LIKES + DISLIKES
·
DESCRIBE PREFERENCES IN CONCEPT Of MARGINAL BENEFIT MARGINAL BENEFIT CURUE
·
MBC IS ALSO DEMAND CURVE
·
.. GOAL OF THEORY Of CONSUMER CHOICE IS TO DERIVE DEMAND CURVE FROM DEEPER ACCOUNT Of How
CONSUMERS MAKE TUEIR BUYING PLANS : EXPLAIN WHAT DETERMINES DEMAND +MB
·
ACHIEVE THIS GOAL VIA DEEPER WAY OF DESCRIBING PREFERENCES
1 APPROACH USES IDEA Of UTILITY
·
UTILITY =
BENEFIT/SATISFACTION PERSON GETS FROM CONSUMPTION Of GOODS + SERVICES
· TOTAL BENEFIT PERSON GETS FROM CONSUMPTION Of All DIff GOODS
TOTAL UTILITY + SERVICES
-
DEPENDS ON LEVEL Of CONSUMPTION
-
MORE CONSUMPTION GENERALLY GIVES MORE UTILITY
· CHANGE IN TOTAL UTILITY THAT RESULTS FROM A ONE-UNIT INCREASE IN QUANTITY Of GOOD CONSUMED
MARGINAL UTILITY
QUANTITY OF GOOD CONSUMED &
-
MU IS POSITIVE BUT DIMINISHES AS
-
POSITIVE MU
ALL THINGS PEOPLE ENJOY +WANT MORE Of
·
·
Tu AS QUANTITY CONSUMED
POLLUTED AIR
·
SOME THINGS +ACTIVITIES :
NEGATIVE MU :. LOWER TO EC .
-
DIMINISHING Mr
↓ AS CONSUMPTION
·
TENDENCY FOR MU TO Of GOOD =
PRINCIPLE Of DIMINISHING Mr
