Shahid Monametsi
This chapter discusses the competitiveness of the markets and how this affects separate competitors decisions when selling. This chapter also brings the ideas of supply and demand together with the fairly new concepts introduced in the previous chapter. This chapter really confused me. I know that it is hard especially since the last chapter was a little difficult for me to understand, however this was far less equation heavy. I didn't quite understand the graphs. It was not until I referred back to the elasticity laws/ logic that I was able to understand what was going on. Even then I was still left wondering how to calculate profit from this. I know that that is a pretty huge portion of the chapter, so I hope to learn that soon.
Another thing that I fail to understand is the idea of exits, enters, shutdowns, and sunk costs. If asked to figure that out on a graph (with the the total cost and what not given), I know that I would genuinely struggle with this. That also seems like a difficult yet important part, so I definitely plan on receiving help on this chapter.
Monday, October 31, 2016
Tuesday, October 25, 2016
Chapter 13 Blog Post
Shahid Monametsi
Chapter thirteen discusses the idea of total cost and how to calculate and interpret this through a graph. This chapter had a lot of content in it making it a little difficult to absorb when first reading it. After a while you begin to realize that this chapter was actually kind of reiterating everything in more complicated terms. For example the way to calculate the total marginal cost seemed pretty clear when it was discussed at the beginning of the chapter, yet the book still talks about calculating it, slope- wise. This seems incredibly redundant and makes a simple concept seem long and tedious.
Overall the content of this chapter was pretty easy to understand. I think that everything that we learned in previous chapter (especially chapter 4) has prepared us for the idea that the end goal is to have profits i.e make money. This made it very easy to use economic reasoning, once again, to work through the actual substance.
Chapter thirteen discusses the idea of total cost and how to calculate and interpret this through a graph. This chapter had a lot of content in it making it a little difficult to absorb when first reading it. After a while you begin to realize that this chapter was actually kind of reiterating everything in more complicated terms. For example the way to calculate the total marginal cost seemed pretty clear when it was discussed at the beginning of the chapter, yet the book still talks about calculating it, slope- wise. This seems incredibly redundant and makes a simple concept seem long and tedious.
Overall the content of this chapter was pretty easy to understand. I think that everything that we learned in previous chapter (especially chapter 4) has prepared us for the idea that the end goal is to have profits i.e make money. This made it very easy to use economic reasoning, once again, to work through the actual substance.
Sunday, October 23, 2016
Chapter 11 Blog Post
Shahid Monametsi
This chapter was very interesting in my opinion. Despite not having any complicated math behind the concept, I still find that there are some concepts that may trip me up on the test. I understand the terms "rival in consumption" and "excludability", however I have troubles trying to sort the 4 categories of goods. Natural monopolies always confuse as I still don't quite understand how they are not rival in consumptions thus leading me to mix them up with private goods. I am also confused by the difference between tragedy of the commons and the free rider problem. I understand when and how they are both applicable, yet I fail to see the difference in the two ideas. This most likely won't be a problem on a quiz however it was definitely something that puzzled me throughout the reading.
Overall this chapter was fairly simple. I can see how it might be viewed as a little more difficult than the previous chapters however I found it overall to be very comprehendible. I for the most part discusses the ideas of moral and common sense so if ever in doubt I know that I could reason through a question which I find comforting.
This chapter was very interesting in my opinion. Despite not having any complicated math behind the concept, I still find that there are some concepts that may trip me up on the test. I understand the terms "rival in consumption" and "excludability", however I have troubles trying to sort the 4 categories of goods. Natural monopolies always confuse as I still don't quite understand how they are not rival in consumptions thus leading me to mix them up with private goods. I am also confused by the difference between tragedy of the commons and the free rider problem. I understand when and how they are both applicable, yet I fail to see the difference in the two ideas. This most likely won't be a problem on a quiz however it was definitely something that puzzled me throughout the reading.
Overall this chapter was fairly simple. I can see how it might be viewed as a little more difficult than the previous chapters however I found it overall to be very comprehendible. I for the most part discusses the ideas of moral and common sense so if ever in doubt I know that I could reason through a question which I find comforting.
Sunday, October 16, 2016
Chapter 10 Blog Post
Shahid Monametsi
I actually really enjoyed reading this chapter because despite focusing on the practical human greed aspect of business and economics I find it refreshing to also read about the social effects business have/ must uphold. I know that extrenalities are dealt with for the purpose of furthering profit and all, however I think that this is a very important for those who actually want to go into this discipline to understand that there are consequences for all actions and I think that this is one of those lessons.
Despite finding most of this section to be common sense I did not actually know that there was such a thing as positive of extrenalities. The concept was easy but it seemed as though extrenalities only had a negative connotation. The Coase's Theorem is also relatively new to me however I found that this was really just a way of talking about settling disputes, which is the chapter in its entirety.
I actually really enjoyed reading this chapter because despite focusing on the practical human greed aspect of business and economics I find it refreshing to also read about the social effects business have/ must uphold. I know that extrenalities are dealt with for the purpose of furthering profit and all, however I think that this is a very important for those who actually want to go into this discipline to understand that there are consequences for all actions and I think that this is one of those lessons.
Despite finding most of this section to be common sense I did not actually know that there was such a thing as positive of extrenalities. The concept was easy but it seemed as though extrenalities only had a negative connotation. The Coase's Theorem is also relatively new to me however I found that this was really just a way of talking about settling disputes, which is the chapter in its entirety.
Monday, October 10, 2016
Chapter 8 Blog Post
Shahid Monametsi
Chapter 8 was not at all a very difficult chapter to grasp. It was really just an extension of the previous two chapter which talked broadly of the idea of taxes. This chapter simply verified the idea that taxes kind of screw over both the buyer and the seller. I have yet to come up with an actually proposal however I feel like there should be a better way to fund for public amenities.
I suppose this chapter did introduce the two new ideas though: the concept of deadweight loss and Laffer's model. I don't actually understand how we might be tested on the model however I feel as though I understood the meaning of the curve. It makes sense that there is a "sweet spot" in the sense that too little levied leads to no benefit and too much may result in economic chaos. deadweight loss makes me once again question the efficiency of tax, but I understand how to calculate it nonetheless.
Chapter 8 was not at all a very difficult chapter to grasp. It was really just an extension of the previous two chapter which talked broadly of the idea of taxes. This chapter simply verified the idea that taxes kind of screw over both the buyer and the seller. I have yet to come up with an actually proposal however I feel like there should be a better way to fund for public amenities.
I suppose this chapter did introduce the two new ideas though: the concept of deadweight loss and Laffer's model. I don't actually understand how we might be tested on the model however I feel as though I understood the meaning of the curve. It makes sense that there is a "sweet spot" in the sense that too little levied leads to no benefit and too much may result in economic chaos. deadweight loss makes me once again question the efficiency of tax, but I understand how to calculate it nonetheless.
Tuesday, October 4, 2016
Chapter 7 Blog Post
Shahid Monametsi
This chapter confused me numerous times. I know that this was meant to be on of the easier topics (especially after tax wedges and what not), however I feel as though I failed to grasp a lot of the concepts covered at the moments. I feel as though the book made calculating the consumer surplus far more complicated than it actually is, and I found myself getting lost in the transition. Nonetheless, I think that this chapter is very intriguing because it further explains the human reactions in the economy. I felt as though this chapter was more realistic than the earlier chapters in the sense that it takes into account human reaction and the tendency to want more for less (greediness).
One part of the chapter that came across completely clear to me was the social planner bit. While I thought price was the only thing guiding the market (as explained in the invisible hand ideal), having a character/ person in charge made everything easier to follow for some reason. The equations provided to find Total Surplus seemed logical, however I know that I could never derive them if ever needed.
I found the end of the chapter to be a brief summary of everything we've learned. While the term Market Failure is new, I believe that the cause and effects made perfect sense based off of what we've already learned (policy makers interferences and efficient proaction).
This chapter confused me numerous times. I know that this was meant to be on of the easier topics (especially after tax wedges and what not), however I feel as though I failed to grasp a lot of the concepts covered at the moments. I feel as though the book made calculating the consumer surplus far more complicated than it actually is, and I found myself getting lost in the transition. Nonetheless, I think that this chapter is very intriguing because it further explains the human reactions in the economy. I felt as though this chapter was more realistic than the earlier chapters in the sense that it takes into account human reaction and the tendency to want more for less (greediness).
One part of the chapter that came across completely clear to me was the social planner bit. While I thought price was the only thing guiding the market (as explained in the invisible hand ideal), having a character/ person in charge made everything easier to follow for some reason. The equations provided to find Total Surplus seemed logical, however I know that I could never derive them if ever needed.
I found the end of the chapter to be a brief summary of everything we've learned. While the term Market Failure is new, I believe that the cause and effects made perfect sense based off of what we've already learned (policy makers interferences and efficient proaction).
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