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Consumption efficiency - PowerPoint PPT Presentation

Chapter 4

Chapter 4

Chapter 4. Welfare economics and the environment. Introduction. When economists consider policy questions relating to the environment they draw upon the basic results of welfare economics.

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Demystifying Efficiency in the Economics Classroom

Demystifying Efficiency in the Economics Classroom

Demystifying Efficiency in the Economics Classroom. David A. Anderson Centre College. Consumption Efficiency. Goods and services are purchased so as to maximize utility Condition: The Optimal Consumption Rule. The Model. Coffee. Q coffees. Indifference Curve. Budget Line. Q scones.

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SECONDARY PRODUCTION

SECONDARY PRODUCTION

SECONDARY PRODUCTION. ENERGY FLOW THROUGH THE BODY. SECONDARY PRODUCTION. 1. Pn goes either to decomposers or herbivores. The latter consume (C) some. Of this part is passed out of the animal as urinary (U) or faecal (F) energy, and the rest

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Market Failure ?

Market Failure ?

Market Failure ?. ???? ? ???? ?. Pareto Efficiency ???????. Efficiency is attained if it is impossible to reallocate resources to make one gain without causing loss to other. Corresponding to the 3 basic economic problems in resource allocation, there exists 3 efficiency conditions.

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B Xa

B Xa

Figure 5.1 Efficiency in consumption. B Y. A Xb. A Xa. A 0. S. A X. I B1. I B0. I A. a. B Ya. A Ya. b. B Yb. A Yb. I B1. I B0. I A. B X. B 0. B Xa. B Xb. T. A Y. Figure 5.2 Efficiency in production. K Y. L Xb. L Xa. X 0. L X. I Y1. I Y0. I X. a. K Ya. K Xa. b.

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B Xa

B Xa

Figure 5.1 Efficiency in consumption. B Y. A Xb. A Xa. A 0. S. A X. I B1. I B0. I A. a. B Ya. A Ya. b. B Yb. A Yb. I B1. I B0. I A. B X. B 0. B Xa. B Xb. T. A Y. Figure 5.2 Efficiency in production. K Y. L Xb. L Xa. X 0. L X. I Y1. I Y0. I X. a. K Ya. K Xa. b.

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232 views • 14 slides

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