第五 公平与效率.ppt

Supply and Marginal Cost Producer Surplus Producer surplus is the price received for a good minus the minimum-supply price (marginal cost), summed over the quantity sold. It is measured by the area below the market price and above the supply curve, summed over the quantity sold. Figure 5.4 on the next slide shows the producer surplus from pizza when the market price is $15 a pizza. Supply and Marginal Cost Max is willing to produce the 50 th pizza for $10. Maxs producer surplus from the 50 th pizza is the price minus the marginal cost, which is $5. Supply and Marginal Cost At $15 a pizza, Max sell 100 pizzas. So his producer surplus is the area of the blue triangle. Supply and Marginal Cost At $15 a pizza, Mario sells 50 pizzas. So his producer surplus is the area of the blue triangle. Supply and Marginal Cost At $15 a pizza, the producer surplus for the economy is the area under the market price above the market supply curve, summed over the 150 pizzas sold. Supply and Marginal Cost The red areas show the cost of producing the pizzas sold. The producer surplus is the value of the pizza sold in excess of the cost of producing it. Is the Competitive Market Efficient? Efficiency of Competitive Equilibrium Figure 5.5 shows that a competitive market creates an efficient allocation of resources at equilibrium. In equilibrium, the quantity demanded equals the quantity supplied. Is the Competitive Market Efficient? At the equilibrium quantity, marginal benefit equals marginal cost, so the quantity is the efficient quantity. When the efficient quantity is produced, total surplus (the sum of consumer surplus and producer surplus) is maximized. Is the Competitive Market Efficient? The Invisible Hand Adam Smiths “invisible hand” idea in the Wealth of Nations implied that competitive markets send resources to their highest valued use in society. Consumers and producers pursue their own self-interest and interact in markets. Market transactions generate