Absolute vs Comparative Advantage Output Shoplifting Clyde 3

Absolute vs Comparative Advantage Output Shoplifting Clyde 3 shirts Bonnie 5 shirts Input Fake IDS Break a Code 1 ID 2 IDs Wire a Bomb Jack 20 min 50 min Jill 45 min 60 min Trick to remember? ________________________ Absolute Advantage? _______________________ Comparative Advantage? _________________ Perfectly Elastic Supply or Demand Perfectly Inelastic Supply or Demand Relative Elasticity

Price Floor Constant Opportunity Cost PPC/PPF Price Ceiling Increasing Opportunity Cost PPC/PPF LRATC Curve Short-run Perfect Competition - Profit

Short-run Perfect Competition: Loss Perfect Competition Breakeven Point Long-Run Perfect Competition – FIRM & Market Perfect Competition Shutdown Point Monopoly

Long-Run Equilibrium Monopolistic Competition Monopsony Short-Run Monopolistic Competition: Profit Short-Run Monopolistic Competition: Loss Labor Market: Long-Run Perfect Competition – FIRM & Market

Per Unit Sales Tax Monopoly & Externality Negative Externality Lorenz Curve Positive Externality Laffer Curve

International Trade: Import Demand vs Total Revenue International Trade: Export Left The price of peanut butter was $4/jar and 3, 000 jars were demanded per week. Recently the price increased to $6/jar and demand has decreased to 2, 000 jars per week. What is the price elasticity of demand? Top Player 1 Using the Mid-Point Formula calculate the following price elasticity of demand… Middle Player 2 Centre Right 3, 3 0, 5 1, 2 4, 2 8, 7 6, 4 5, 7 5, 8 2, 5 Bottom a) Does player 1 have a dominant strategy? b) Does player 2 have a dominant strategy c) Identify the Nash Equilibrium