Microeconomics II: Concepts and Theories
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Microeconomics II: Concepts and Theories
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An extensive summary of microeconomic principles, focusing on the rational decision-making process using concepts like marginal benefit and marginal cost. It explains how asymmetric information, including adverse selection and moral hazard, can lead to market failures, along with mechanisms like screening and signaling used to combat these issues. Furthermore, the text outlines market dynamics, detailing the factors of production, consumer and producer surplus, and the crucial concept of the production possibilities frontier (PPF) to illustrate opportunity costs. Finally, the source covers elasticity—such as price, cross-price, and income elasticity—to gauge demand responsiveness, and addresses market interventions that cause deadweight loss, along with the concepts of absolute and comparative advantage.
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