What This Document Is
These are section notes designed to supplement lectures for an introductory economics course (ECON 1) at the University of California, Berkeley. Specifically, these notes cover material from Lecture on March 16th and delve into advanced concepts related to market structures beyond perfect competition. This resource is intended to reinforce understanding of core economic principles through detailed exploration of related theories and analytical frameworks. It’s a valuable companion for students seeking a deeper grasp of the course material.
Why This Document Matters
Students enrolled in ECON 1, or those reviewing intermediate microeconomic theory, will find these notes particularly helpful. They are ideal for use *after* attending the corresponding lecture, as a study aid during exam preparation, or as a reference when completing problem sets. These notes are especially beneficial for students who want to solidify their understanding of how real-world market dynamics deviate from idealized competitive models and the implications of those deviations. Accessing the full content will provide a comprehensive understanding of these crucial economic concepts.
Topics Covered
* Measuring market power using analytical indices.
* The economic consequences of firms possessing market power.
* Strategies firms employ to establish and maintain market dominance.
* Analysis of markets with single buyers (monopsony).
* Application of economic principles to solve industry-specific problems.
What This Document Provides
* A detailed exploration of the Lerner Index and its implications.
* Discussion of “rent seeking” behavior and its impact on market efficiency.
* A focused examination of monopsony market structures.
* Practice problems designed to test understanding of the concepts.
* Illustrative examples to aid in the application of theoretical frameworks.
