MAE101 Lecture Notes - Lecture 1: Primary Market, Marginal Cost, Mira-Bhayandar Municipal Corporation
Document Summary
Microeconomics- it is the study of how households and firms make decisions and how they interact in markets. Normative v positive analysis- positive make a statement about how the world is, while normative statements claim how the world ought too be. Price - good is allocated to individual who both willing and able to pay for it. First-in best-dressed - good is allocated to individual who arrives first, even if later- arriving individual willing and able to pay more for it. Set aside/qualification - good is allocated to individual who individual who meets certain pre-determined criteria, even if another individual willing and able to pay more for it, or arrives sooner. Lottery - good is allocated to individual who winner(s) of the lottery, even if another individual willing and able to pay more for it, arrives sooner, or criteria satisfies certain. Market a place where buyers and sellers meet.
