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D.
Citizen Well-Being is More Important and Continually Grows.
1) Our society's stability has
consistently increased US productivity
which is key to individual well-being. Think how the
public safety net
has increased since the 1930's and the success of the
federal
children's bureau. Think
economic distress in Russia, Europe,
and even Japan.
2) Scientific achievements have
continuously added to citizen
well-being. Think
public health, smart phones with loads of
free stuff not part of GDP or wages, streaming audio-
video, Gillette Stadium ... See
Health Problems Solved
3) Personal Income which is a function of nature and
Think nurture has
increased continuously if not always rapidly.
Russia, China,
and Europe's really slow recovery from the Great
Recession.
Source
Economic Wellbeing Some Successful
Companies Pay Everyone Well
from
economist.com 01/12/1 and 10/1/16
See
US Economic Normality 1945-2015
page 2,
World Changed and Good Jobs Disappeared
20th Century U.S. Decade Ranking
IV. Economic Analysis of
Pure Competition
A. Competition is
efficient.
1.
Price settles where long-run ATC is at its lowest point indicating
goods are
produced efficiently.
2.
P = MR = MC indicating that resources are allocated efficiently as
$'s spent by consumers (P) = the
$'s received by producers (MR) = the
$ cost of producers (MC) and
economic profit is zero.
B. Shortcomings
1.
Spillover costs (pollution) and benefits (education) aren't properly
measured
resulting in goods being over and
under produced.
a. Government intervention was needed to lower automobile pollution.
b. Governments supports education with grants and inexpensive loan
problems
to students and colleges.
2.
Monopoly power develops to negate Adam Smith's "invisible hand" of
competition which is required to assure that the purely
competitive
adjustment occurs.
3.
Eliminating economic profit makes it difficult for competitive firms to
afford
expensive R & D and technology.
4.
Economic Growth Volatility
Unit IV. Review Price equal ATC where MR = MC with no profit
V. Competitive Supply
1. A firm's MC curve is its
short-run supply curve.
2. Industry supply is the
horizontal summation of the firm's supply curves.
3.
Economics: Long
Run Supply - Cliffs Notes
analyzes the affect of long term supply on the efficiency of all industries.
Unit V Review
requires many
independent resource suppliers competing
with virtually identical factors
VI. Other theories of the
Competitive Model
(from Wiki requires calculus)
A.
Bertrand competition
B.
Cournot competition
requires calculus.
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U.S.
Competitiveness Declines
Econintersect: The U.S. slipped
to seventh place in the ranking of economic competitiveness in the 2012. source the WEF (World Economic Forum).
Last year the U.S. ranked fifth. The current result marked the fourth year
of decline for the country that used to rule the competitiveness roost.
More
from econintersect.com.
IMD Disagrees with its 2012 World Competitiveness Rankings
Editor's comment
on free trade
Free trade increase supply
which forces price down resulting in some combination of lower profit
or lower cost. Owners and managers
are good at maintaining profit and will try to lower the cost of
materials, labor or overhead. Workers often bear the brunt of this
process.
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