ECON101: Principles of Microeconomics

3.1: Maximizing in the Market Place

• Principles of Microeconomics: "Chapter 6, Section 1 and Section 2"

  Read Section 6.1 to revisit the concept of marginal costs and benefits within the context of the consumer's (and the firm's) maximizing behavior. Proceed to read Section 6.2, which defines two new concepts: consumer surplus and producer surplus. Take a moment to read through the stated learning outcomes for this chapter of the text, which you can find at the beginning of each section. These outcomes should be your goals as you read through the chapter. Attempt the "Try It” problem for each section.
  

• Khan Academy's "Demand Curve as Marginal Benefit Curve" Page

  Watch this video about the demand curve as a marginal benefit curve.
  

• Khan Academy's "Consumer Surplus Introduction" Page

  Watch this video about consumer surplus.
  

• Khan Academy's "Total Consumer Surplus as Area" Page

  Watch this video about total consumer surplus.
  

• Khan Academy's "Producer Surplus" Page

  Watch this video about producer surplus.
  

• "How Much to Produce? The Story of Marginal Revenue and Marginal Costs" Page

  Watch this video about how an apple farmer decides the optimal number of apples to pick. At the end of the video, consider whether or not the government should intervene. Think about which arguments you might make both supporting and disagreeing with the government acting in the market. In 3.2, we will cover specific ways the government might participate in the market.
• Wolfram Demonstrations Project: "Consumer and Producer Surplus"