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Post by andreasthewise on Feb 17, 2008 16:50:07 GMT -5
Maybe this will clear it up: Becky isn't the only icecream producer. In perfect competition, the idea is that when the price is low (and only limited profits can be made) few businesses stay in the market. When the price is high (and large profits can be made) more businesses join the market, and so the total supply is greater. That help?
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Nesslandria Haneh
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Countess of Wolfshire County
Loyal servant to our Lord Protector and his Queen.
Posts: 230
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Post by Nesslandria Haneh on Feb 17, 2008 18:13:13 GMT -5
It's scary when the little accounting and economics I know starts blending together. I'm going to school for accounting, but I'm taking a break to finish some of my general education credits (which is a crime). So Becky will sell as many units of product with the highest profit margin as possible. Even if the cheapest unit is flying off the shelves, she can't continue to produce only that product if the profit margin isn't high enough to support all of her expenses. Becky doesn't just pay for the icecream she sells, she also needs to pay for all the overhead she incurs by running her business. Dean Gelare brought this up with Becky needing to make enough money off her icecream to pay her employees and rent her store space. Increased production causes an increase in cost to Becky and an increase in the price Anna pays for her icecream.
I know I repeated what everyone just said. I guess I just need to affirm my intelligence. Sorry.
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Gelare
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Citizen of Nerianti of Wolfshire
Dean Gelare of the Academy
Posts: 138
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Post by Gelare on Feb 18, 2008 21:37:43 GMT -5
Upon rereading the recent chunk of lecture, I've concluded that it sucks, and should be rewritten. No harm in that, it happens to the best of us, I just skipped ahead without adequately defining various important concepts which are really quite critical to understanding how markets work. Therefore, the next lecture will be on perfect competition and what it means to be a representative consumer/firm (which, I now realize, is what I meant for the happy little people in my example to be - except I didn't explain that anywhere, which is important).
As a point of interest, King Ari, today in my economics class, someone piped up with the exact same question you did, about wanting to produce more to make up for lower costs. That's something I'll try to address more thoroughly in the future.
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Post by Rook on Feb 20, 2008 18:15:47 GMT -5
Looking forward to it.
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Gelare
Academy Faculty
Citizen of Nerianti of Wolfshire
Dean Gelare of the Academy
Posts: 138
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Post by Gelare on Feb 21, 2008 1:20:15 GMT -5
Update: I lied. I was gonna write about perfect competition, but my writing led me to something completely different - but probably more important. Lecture coming soon!
Update update: Okay, I've posted some new material. I'd like to go on, but darn it all if there aren't a million different things I need to address at once. Does anyone remember how to differentiate equations? Because you need to do that really just all the time in economics. I'll see what I can do about keeping the math requirement as low as possible, you all let me know if I've screwed something up.
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Post by Rook on Feb 21, 2008 12:36:44 GMT -5
Not me, I never did Calculus.
I know
y=ax^n
dy/dx=anx^n-1
But that's it.
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Gelare
Academy Faculty
Citizen of Nerianti of Wolfshire
Dean Gelare of the Academy
Posts: 138
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Post by Gelare on Feb 21, 2008 17:01:17 GMT -5
That's actually good enough, that's the power rule and that'll get you pretty far. I think what I'll do is split up the lecture, one section in general terms and then a math example for people that know a little calc. If anyone has a better idea, feel free to let me know.
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Post by Rook on Feb 22, 2008 19:33:03 GMT -5
What else would I need? I am a little shakey on the idea of adding and subtracting differentiated equations. Maybe I'm over thinking it, it seems as straight forward as solving the differential and adding the solutions. Or subtracting them. But if that's the case I don't know where
dy/dx = du/dx + dv/dx fits into all that.
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Nesslandria Haneh
Aristocrat
Countess of Wolfshire County
Loyal servant to our Lord Protector and his Queen.
Posts: 230
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Post by Nesslandria Haneh on Feb 26, 2008 2:03:41 GMT -5
Blast! I took calc, but have forgotten most of it because I haven't used it in a while. I still have my book, though, so if you tell me what you need, I'll look it up for you. ;D I wish I remembered my calc well enough to give a lecture on it.
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