Microeconomics III: Markets, Competition, and Externalities
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Microeconomics III: Markets, Competition, and Externalities
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An overview of concepts in microeconomics, focusing primarily on market structures and market challenges. It defines the characteristics of perfect competition, including concepts like the break-even and shutdown points for producers, and contrasts it with other market types such as monopolies, oligopolies, and monopolistic competition. A significant portion of the text addresses externalities, explaining both positive and negative effects on uninvolved third parties, and outlines solutions like public regulations and private negotiation under the Coase Theorem. Finally, the document categorizes types of goods based on rivalry and excludability, detailing problems like the free rider problem and the tragedy of the commons, and applies economic concepts to environmental issues such as using a carbon tax or cap-and-trade to address climate change.
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