Structure Types of cost curves Fixed, variable and total cost functions Average fixed, average variable and average cost functions Marginal cost functions Marginal and variable cost functions Marginal and average cost functions Short run and long run cost curves

Structure From Individual to Market Demand Functions Elasticities Revenue and ownprice- elasticity of demand Marginal revenue and price elasticity

Structure on -collusive- moves Simultaneous moves Quantity competition -Cournot model Price competition- Bertrand model Sequential moves Quantity leadership- Stakelberg model Price leadership Collusion

Structure Definition Consumption externality Production externality The tragedy of commons

Mission of Economists Gary Becker: believe that the main purpose of economics is to understand and help to alleviate poverty\ Who are the poor? How can one help?

How Should a Monopoly Price? So far a monopoly has been thought of as a firm which has to sell its product at the same price to every customer. This is uniform pricing. Can price-discrimination-(差别定价 ) earn monopoly higher profits?

Structure What causes monopoly Profit-maximizing- choices of monopoly Markup pricing Taxing monopoly Inefficiency of monopoly Natural monopoly(自然垄断)

Structure Market equilibrium Quantity tax and equilibrium Tax incidence税收分担) Deadweight loss(额外净损失)

Structure Market environments Market demand for a competitive firm Short-run- supply decision Upward sloping MC curve Shut- down condition Long -run- supply decision Comparing long-run- and short--run decisions Producer's' surplus and profits

Contents Dominant strategy Nash equilibrium Prisoner's' dilemma and repeated games Multiple equilibria and sequential games Pure and mixed strategies