Chapter and sections in Taylor to Read
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Pg #
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Comments/
Assignment
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2 Choice in a World of Scarcity
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15 |
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Choosing What to Consume |
16 |
Ignore now. Not necessary now- we covered this in unit 1 |
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A Consumption Choice Budget Constraint |
16 |
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How Changes in Income and Prices Affect the Budget Constraint |
18 |
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Personal Preferences Determine Specific Choices |
18 |
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From a Model with Two Goods to the Real World of Many Goods |
20 |
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Choosing between Labor and Leisure |
20 |
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An Example of a Labor-Leisure Budget Constraint |
20 |
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How a Change in Wages Affects the Labor-Leisure Budget Constraint |
20 |
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Making a Choice Along the Labor-Leisure Budget Constraint |
22 |
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Choosing between Present and Future Consumption |
22 |
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Interest Rates: The Price of Intertemporal Choice |
23 |
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The Power of Compound Interest |
24 |
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An Example of Intertemporal Choice |
25 |
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Three Implications of Budget Constraints: Opportunity Cost, Marginal Decision-Making, and Sunk Costs |
26 |
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Opportunity Cost |
26 |
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Marginal Decision-Making and Diminishing Marginal Utility |
28 |
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Sunk Costs |
29 |
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The Behavior of Profit-Seeking Firms |
29 |
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Defining Profits |
29 |
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Why Earning High Profits Isn’t Easy |
30 |
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The Production Possibilities Frontier and Social Choices |
30 |
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The Shape of the Production Possibilities Frontier and Diminishing Marginal Returns |
32 |
Re-read and review this sub-section. The concept of diminishing marginal returns is the basis of cost analysis. |
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Productive Efficiency and Allocative Efficiency |
34 |
Ignore now. Not necessary now- we covered this in unit 1 |
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Why Society Must Choose |
35 |
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Confronting Objections to the Economic Approach |
35 |
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A First Objection: People, Firms, and Society Don’t Act Like This |
35 |
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A Second Objection: People, Firms, and Society Should’t Do This |
37 |
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Facing Scarcity and Making Trade-offs |
38 |
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Key Concepts and Summary |
38 |
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Review Questions |
40 |
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9 Cost and Industry Structure
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173 |
Read- Important. This entire chapter, while relatively short, is very important. It lays the foundation for Units 8-11. Pay particular attention to Exhibits 9-4 and 9-8. |
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The Structure of Costs in the Short Run |
174 |
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Fixed and Variable Costs |
174 |
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Average Costs, Average Variable Costs, Marginal Costs |
177 |
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Lessons Taught by Alternative Measures of Costs |
178 |
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A Variety of Cost Patterns |
179 |
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The Structure of Costs in the Long Run |
180 |
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Choice of Production Technology |
180 |
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Economies of Scale |
182 |
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Shapes of Long-Run Average Cost Curves |
183 |
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The Size and Number of Firms in an Industry |
185 |
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Shifting Patterns of Long-Run Average Cost |
187 |
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Conclusion |
188 |
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Key Concepts and Summary |
188 |
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Review Questions |
190 |
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