BASIC INFORMATIONiwhat is the term for the next best alternative eiven up when makine a ohoioe?

CpporLunlLv cosL4carclLv 6 Land2 CaplLal3 Labor4 enLrepreneurshlp8 Land2 CaplLal3 Labor1O,arkeLCaplLallsmlree enLerprlseii12 Command 2 ,arkeLi14CeLerls parlbusi16 WhaL wlll be produced?2 Pow wlll lL be produced?3 lor whom wlll lL be produced?i18rawn ln class or pp 303 ln LexL Curve lllusLraLes all Lhe posslble comblnaLlons of 2 aoods lf resources are used Lo Lhe fullesL2 lnefflclencv 3 lmposslble wlLhouL more resources4 ,ore resourcesi2Oemand curve shlfLs Lo Lhe rlahL9rlce aoes upquanLlLv aoes up8efer Lo Lhe araphs on paae 3 ln LexL:i22emand shlfLs Lo Lhe rlahL;uanLlLv aoes up9rlce aoes up8efer Lo Lhe araphs on paae 3 ln LexL:24upplv shlfLs Lo Lhe lefL9rlce aoes up;uanLlLv aoes down8efer Lo Lhe araphs on paae 3 ln LexL:26emand shlfLs lefL (aoes down)9rlce aoes down;uanLlLv aoes down8efer Lo Lhe araphs on paae 3 ln LexL:28emand wlll shlfL rlahL (ao up) and supplv wlll shlfL Lo lefL (ao down)9rlce wlll ao up;uanLlLv mav ao up or down8efer Lo Lhe araphs on paae 3 ln LexL:O surplus ls creaLedi2 urplus of workers whlch means unemplovmenL2 LosL [obs4l wlll lllusLraLe ln class or on paae 49 ln LexL69rlce floor89rlce celllna4O"n" I5 kCDUCLk 5UkLU5"C" I5 CCN5UMLk 5UkLU5 i42"B" is deadweigli loss"A" is iax ievenue Tiiangle above "A" is consumei suiplusTiiangle below "A" is pioducei suiplus 44lnelasLlc aL low prlces2unlL elasLlc near mlddle3elasLlc aL hlah prlces46Chanae ln ;dlvlded bvchanae ln 9;+;2/2 9+92/23m2m dlvlded bv8007003m+2m/2800+700/2m dlvlded bv 0023m 730m x 730 730m23m 00 230mwhlch ls areaLer LhanLherefore e|ast|c48x? chanae ln ; of producL x chanae ln 9 of producL ?Olf Lhe answer ls neaaLlve complemenLlf Lhe answer ls poslLlve subsLlLuLei2l chanae ln ; chanae ln lncome4lf Lhe answer ls neaaLlve lnferlor aoodlf Lhe answer ls poslLlve normal aood6,aralnal 8hown ln class or on p 34 ln LexL6Ol wlll do ln class or on paae 34 of LexL peak2 recesslon3 Lrouah4 recovervi62,aralnal uLlllLv per prlce of producL,aralnal uLlllLv per prlce of producL 8(also Lrue for C eLc)(when all lncome ls spenL!)64We have equlllbrlum where Lhe budaeL llne ls tangent Lo Lhe lndlfference curve66@hev are shaped llke parallel L"s68@hev are sLralahL parallel dlaaonal llnes from one axls Lo Lhe oLherO CpporLunlLv cosL2 lmpllclL cosLi2xpllclL cosLs(accounLlna cosLs)andlmpllclL cosLs(normal proflLs or opp cosLs)4lalse accounLlna proflL economlc and normal proflLs6emand and @C8@C and IC8OlCi82lrom Lhe @C shorL run curves of all Lhe varlous slze flrms(lllusLraLlon on 8oard or p 403)84conomles of scale86lseconomles of scale88Cn Lhe same araph draw an IC curve marklna Lhe low polnLO12

4l wlll lllusLraLe on board or on paae 424 ln LexLLrase graph6

l wlll draw on boardConsumer surplus ls Lhe Lrlanale above economlc proflL Lrase after I check your graph

raw on board@here ls no consumer surplus@he monopolv Lakes lL as Lhelr economlc proflLioo1O1lllusLraLe ln class or on paae 434 ln LexLnswer on nexL paaeio:nswer soclallv opLlmal ,Cfalr reLurn @Cmonopolv prlce ,C ,8 up Lo io1O4 emand curve ls klnked2 ,aralnal revenue curve ls broken3 @here are 2 ,C curvesio1O6 ln mono comp Lhe demand curve ls more elasLlc2 lf Lhere ls an economlc proflL more flrms wlll enLer Lhe lndusLrv causlna Lhe prlce Lo fall movlna Lhe demand curve Lo equlllbrlum where Lhere ls onlv Lhe maxlmum normal proflL io1O8-o!io11OAIconfoss donlconfoss 1O,1O O,2Ool donl 2O,O 1,11. Doos ol havo a doninanl slialogv`2. Doos AI havo a doninanl slialogv`. Whal is ols slialogv`4. Whal is AIs slialogv` 2?es 2 4 8oLh should confessiii112l wlll draw ln class or look on paae 490 ln LexLii1149ure compeLlLlon can'L sell anv moremonopolv no compeLlLorsii1169roducLlve efflclencv ls anv where on Lhe 99lii118llocaLlve efflclencv ls a speclflccomblnaLlon on Lhe 99l where socleLv wanLs Lo produceii12Ollres floods LhefLs accldenLs Lo emploveesi:i122DnpredlcLable chanaes ln supplv and demandi:124Chanaes ln Lhe aeneral economlc envlronmenL2 Chanaes ln Lhe sLrucLure of Lhe economv3Chanaes ln aovernmenL pollcles i:126-omlnal waae ls Lhe number of dollars recelved8eal waae ls nomlnal waae ad[usLed for lnflaLloni:128erlved demand ls Lhe demand for a resource derlved from Lhe demand for a producL LhaL uses Lhe resourcei:1O8enL ii12lnLeresL i148lsk2,aLurlLv lenaLh of loan3Loan slze4@axablllLv3,arkeL lmperfecLlons slze of banki16Waaes i189roflLs i14O9erfecLlv lnelasLlcii142@here ls a flxed amounL of land LhaL doesn'L chanae reaardless of demandi144lf vou dlvlde 70 bv Lhe percenL(number) lL wlll Lell vou how manv vears lL wlll Lake vour lnvesLmenL Lo doublei146-o lL ls noL caplLallL ls flnanclal caplLal,onev cannoL produce a aood or servlcei148emand for a privote aood lnvolves Lhe wllllnaness Lo pav and also Lhe ablllLv Lo pav emand for a pub/ic aood lnvolves on|y Lhe wllllnaness Lo pav i1OovernmenL should produce unLll ,C,8(as lona as Lhere ls a neL beneflL)ii12raphs drawn ln class or on paae 362 ln LexLplllover beneflLs creaLe undero//ocotionplllover cosLs creaLe overo//ocotioni14overnmenL does noL have Lo deal wlLh splllover cosLs and beneflLs ln cerLaln cases8eclplenL of splllover beneflL can baraaln Lo compensaLe oLhers lnvolvedi16lprLi18l lnLeresLpprlnclpalr lnLeresL raLeLLlme ln Lerms of a veari16O-o,aralnal beneflLs ao down and maralnal cosLs ao upee nexL slldesii162raph shown ln class or on paae 368Where ,C,8i164s alwavs where ,C,8,ore accuraLelv,aralnal soclal beneflL maralnal soclal cosLi1669olluLlon conLrol lealslaLlon,C ,8 IoLe8ob$300 $700 ves9aul $300 $230 noave $300 $200 no@oLal $900 $30problemlnefflclenLoes noL pass even Lhouah beneflLs areaLer Lhan cosLsi1689olluLlon lealslaLlon,C ,8 IoLe8ob$300 $330 ves9aul $300 $323 vesave $300 $00 no@oLal $900 $773problemlnefflclenL9asses buL cosLs areaLer Lhan beneflLsi1O@erm medlan voLer@hev are Lhe decldlna voLes on an lssueii12ubsldles i14eflclL spendlnai16blllLvLopav Laxes more heavllv Lhose who can besL afford lL8eneflLrecelved Laxes accordlna Lo who beneflLs Lhe mosLi189roaresslve i18O8earesslve ii1829roporLlonal i184 per unlL Lax wlll cause Lhe supplv curve Lo shlfL Lo Lhe lefL because of Lhe lncrease ln cosLi186@ax lncldence ls Lhe dearee Lo whlch Lhe consumers or Lhe producers bare Lhe burden of a Laxi188 deadwelahL loss ls creaLed-elLher soclallv opLlmal prlce nor soclallv opLlmal quanLlLv ls achlevedi1Offlclencv lossii12l wlll lllusLraLed ln class or look on paae 39039 ln LexLi14116hown ln classi18@he counLrv's curve LhaL ls closer Lo belna verLlcal should produce Lhe producL on Lhe verLlcal axls D should produce corn and ,exlco should produce wheaLi2OO,exlco unlL of wheaL cosLs 3 unlLs of corn 3 raLlo (3090)D unlL of wheaL cosLs 4unlLs of corn4 raLlo (360)lL cosLs ,exlco less Lo produce wheaL so Lhev should produce(LhaL's rlahL) wheaL@hus leavlna Lhe D wlLh a comparaLlve advanLaae ln producLlon of corn:oi2O28oLh counLrles would beneflL lf Lhe counLrles Lrade raLlo ls anvwhere beLween wheaL for 3 corn and wheaL for 4 cornxamplewheaL for 323 corn or wheaL for 38 wheaL:o