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Hi, I’m Akshay!
And I’m Karis! Welcome to MicroVille!
Businesses give you income and wage...
And you give them labor in exchange!
You and your family might not know...
But everyone is part of the Circular Flow!
If you're curious about what you should produce...
Trade with your friends and make a truce!
PPCs show us what's efficient...
On the curve is and inside isn't!
The output cow goes "OOO"
And the input cow goes "IOU"
Supply goes up and demand goes down...
At the intersection equilibrium is found!
Knowing your elasticities would be wise...
Demand, supply, income, and cross-price!
A low price ceiling to protect the “takers”…
A high price floor to protect the “makers”
But when the government gets involved…
Deadweight Loss is left unresolved!
At the minimum ATC, your profits haven’t grown…
But at the minimum AVC, it’s time to shut down!
A monopoly is the only seller - that's where market supply comes from...
And the barriers to entry are impossible to overcome!
Oliogopolies rely on each other for profit...
And when they play the "game" correctly they'll have money in their pocket!
In the laissez-faire market, we rely on the invisible hand...
And the potential for profit is driven by demand!
An unintended cost or benefit is called an externality...
And if too little is consumed the government gives a subsidy!
We hope this book was a thriller! If you have more questions, ask Ms. Miller!
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