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Copyright 2000 Addison-Wesley Longman
PART 1
ECONOMIC THEORY,CONCEPTS, AND METHODS
Copyright 2000 Addison-Wesley Longman
CHAPTER 1
COMPETITION, MONOPOLY, AND SOCIAL WELFARE
Copyright 2000 Addison-Wesley Longman
FIGURE 1.1 Competitive Market: Marginal Cost = Price at $16 per barrel and Output is 22 billion barrels
Copyright 2000 Addison-Wesley Longman
FIGURE 1.2 Monopolistic Industry: Maximum Profit Restricts Annual Output to 12.69 billion barrels
Copyright 2000 Addison-Wesley Longman
FIGURE 1.3 The Monopoly Optimum: Marginal Revenue=Marginal Cost at an Output level of 12.69 billion barrels and Price is $34.62 per barrel
Copyright 2000 Addison-Wesley Longman
FIGURE 1.4 Crude Oil Prices 1950-1998: Deflated prices, 1998 dollars
Copyright 2000 Addison-Wesley Longman
Copyright 2000 Addison-Wesley Longman
Copyright 2000 Addison-Wesley Longman
FIGURE 1.5 The Social Optimum: Price=Marginal Social Cost at $27 per barrel and Output Is 16.5 billion barrels
Copyright 2000 Addison-Wesley Longman
FIGURE 1.6 Consumer Value Is the Total Value to All Consumers
Copyright 2000 Addison-Wesley Longman
FIGURE 1.7 Willingness to Pay: Social Value=Consumer Value
Copyright 2000 Addison-Wesley Longman
FIGURE 1.8 Competition Maximizes Consumer and Producer Surplus
Copyright 2000 Addison-Wesley Longman
