Microeconomics for Business Decisions Econ1001
商业决策的微观经济学 Econ1001

Workshop Activities

Perfect Competition
完美竞争

You are encouraged to print this and hand-draw the diagrams to understand the processes (i.e. the ‘economic story telling’). The written (i.e. typed) responses to other questions can be relatively brief (one or two sentences).
我们鼓励您打印并手绘图表以了解过程（即“经济故事讲述”）。对其他问题的书面（即打字）回答可以相对简短（一两句话）。

Alternatively, you can draw  curves using Microsoft Word. You go into 'Shapes' and then find the curly icon called 'Curve'. Click on the first point, then move the mouse to the second point, and click for each point on the graph. It makes a nice curve relating to each point you have clicked. This takes a bit of practice but is a very useful skill, particularly this semester where we are forced to move on-line.
或者，您可以使用 Microsoft Word 绘制曲线。您进入“形状”，然后找到名为“曲线”的卷曲图标。单击第一个点，然后将鼠标移动到第二个点，然后单击图形上的每个点。它与您单击的每个点相关，形成了一条漂亮的曲线。这需要一些练习，但是一项非常有用的技能，尤其是在本学期，我们被迫上网。

The overall approach when discussing market structures in the context of Econ 1001
在 Econ 1001 的背景下讨论市场结构时的总体方法

is indeed telling a story of the long run adjustment process (e.g. if a firm is making
确实讲述了一个长期调整过程的故事（例如，如果一家公司正在

above-normal profit and the market is easy for competitors to enter and exit as in
高于正常水平的利润，市场很容易被竞争对手进入和退出

perfect competition or monopolistic competion, then what will happen; likewise, if a
完全竞争或垄断竞争，那么会发生什么;同样，如果

typical firm was making a loss then what will happen to it, or to similar other firms?)
典型的公司正在亏损，那么 T 或其他类似的公司会发生什么？

Interesting note: Uber broke the monopoly power of the established taxi booking and licensing companies
有趣的是：Uber打破了老牌出租车预订和许可公司的垄断权力

Using the Uber market to demonstrate concepts about Perfect competition
利用优步市场展示完全竞争的概念

Uber taxi drivers and Uber delivery drivers operate in an extremely competitive market. Let’s assume that Uber drivers represent a reasonable real-world approximation of the concept of ‘perfect competition’. Note that Uber drivers are not employees of Uber, rather they are sole traders or contractors so in effect each operates like a small firm that produces identical products to its competitors. Interestingly, Uber Corporation itself represents that other market extreme – a monopoly which by definition is a single seller and has very high barriers to entry and an extreme degree of market power.
优步出租车司机和优步送货司机在竞争激烈的市场中运营。让我们假设 Uber 司机代表了“完全竞争”概念在现实世界中的合理近似值。请注意，Uber 司机不是 Uber 的员工，而是个体经营者或承包商，因此实际上每个人都像一家小公司一样运作，生产与竞争对手相同的产品。有趣的是，优步公司本身代表了另一个市场极端——根据定义，垄断是单一卖家，具有非常高的进入壁垒和极端的市场力量。

For our Workshop Activities this week, let us assume that the typical Uber driver is a ‘price taker’, especially if there are numerous other Uber services (as well as other transport options) in that geographic region for customers to choose from. Also, even though the price of an Uber ride over the same distance can vary greatly depending on time of day and time of year, for our exercise assume that the individual driver does not have much control over that.
在本周的研讨会活动中，让我们假设典型的优步司机是“价格接受者”，特别是如果该地理区域有许多其他优步服务（以及其他交通选择）供客户选择。此外，尽管在相同距离上乘坐优步的价格可能会因一天中的时间和一年中的时间而有很大差异，但对于我们的练习，假设个人司机对此没有太多控制权。

Question One
问题一

Why would it be fairly accurate to classify Uber drivers as being in the market of perfect competition? To help your answer think about the characteristics of an Uber service and compare that with the characteristics of perfect competition.
为什么将 Uber 司机归类为处于完全竞争的市场是相当准确的？为了帮助您回答优步服务，请考虑优步服务的特征，并将其与完全竞争的特征进行比较。

Very easy to enter (compared with other markets) ; low cost to exit from
非常容易进入（与其他市场相比）;退出成本低

Product is homogeneous (simply a ride from A to B)
产品是同质的（只需从 A 到 B 的旅程）

Ratings system helps with information for both buyer and seller (and maybe very slight service [i.e. product] differentiation but not enough to call this monopolistic competition)
评级系统有助于为买卖双方提供信息（也许服务[即产品]差异化非常小，但不足以称之为垄断竞争）

If an Uber driver was making very large profits (way above their ATC curve) then other Uber drivers would start working too in that area.
如果 Uber 司机赚取了非常大的利润（远高于他们的 ATC 曲线），那么其他 Uber 司机也会开始在这个领域工作。

P = MC = ATC. With lots of competition price would likely be close to marginal cost and at the lowest point of the ATC (Uber driver is paying her / himself a wage based on their opportunity cost of spending time driving and also covering costs for the car).
P = MC = ATC。在竞争激烈的情况下，价格可能接近边际成本，处于 ATC 的最低点（Uber 司机根据他们花时间驾驶的机会成本以及支付汽车成本向她/自己支付工资）。

Question Two
问题二

Refer to Figure 1 ‘Perfect Competition: the Uber market and the Uber driver (‘the firm’)
请参阅图 1“完全竞争：优步市场和 优步司机（”公司“）

Learning note: firstly determine equilibrium price and rule a dotted horizontal line to connect the market with the individual firm. Then draw in that part of the line that is inside the firm box (this is the Demand cure or Marginal Revenue of the firm [i.e. it simply takes the market price]). Next, determine if the firm is running at a profit or loss (where its MR = MC [Marginal Costs]).
学习说明：首先确定均衡价格并划出一条虚线水平线，将市场与单个公司连接起来。然后画出公司框内的那部分线（这是公司的需求治愈或边际收入[即它只是采用市场价格]）。接下来，确定公司是盈利还是亏损（其中其 MR = MC [边际成本]）。

On Figure 1 panel A (over page), identify the equilibrium price for the Uber driver service indistry and clearly label it as P:0.
在图 1 面板 A（上页）上，确定优步司机服务差异的均衡价格，并将其清楚地标记为 P：0。

Why is the market demand curve for the Uber driver services market (or market) downward sloping and not perfectly elastic?
为什么优步司机服务市场（或市场）的市场需求曲线向下倾斜且不完全有弹性？

Because for the market as a whole, buyers will demand different quantitites at different prices. If the market price was too high then buyers would use substitutes (e.g swith to regular cab companies, and / or drive themselves, and /or use more public transport). The substitution effect cause the demand curve to be downward sloping (marginal utilityor benfit is getting less as the buyer consumes addition output)
因为对于整个市场来说，买家会以不同的价格要求不同的数量。如果市场价格太高，那么买家会使用替代品（例如，与普通出租车公司合作，和/或自己开车，和/或使用更多的公共交通工具）。替代效应导致需求曲线向下倾斜（边际效用或收益随着买方消费附加产出而减少）

Based on this initial market equilibrium price, on Figure 1 panel B, draw in a demand curve for Wilma, the typical Uber driver (i.e operating as a very small firm). Label the demand curve as D:0. (Note: the demand curve = marginal revenue) Red line on diagram above
基于这个初始的市场均衡价格，在图1的B面板上，绘制了典型的Uber司机Wilma的需求曲线（即作为一家非常小的公司运营）。将需求曲线标记为 D：0。（注：需求曲线=边际收入）上图上的红线

Next identify Wilma’s short run profit maximising, or loss minimising, level of output (e.g number of rides per week) and clearly label this as Q:0
接下来，确定Wilma的短期利润最大化或损失最小化产出水平（例如每周的乘车次数），并将其明确标记为Q：0

Identify the level of economic profit or loss that Wilma is making by shading the apropriate area (box) and labelling it as either PROFIT or LOSS.
通过对适当区域（框）进行阴影并将其标记为“利润”或“损失”来确定 Wilma 的经济损益水平。 

The typical firm (i.e. our Uber driver Wilma) in this perectly competitive market cannot be described as being in a state of long run equilibrium (i.e there is an intial point of disequilibrium). Explain why this is. You do this by describing the process where the short run adjusts to the long run. Refer to both Wilma (the firm) (Panel B) and the market (Panel A). Draw in the relevent lines to show this adjustment process to the long run. (Use different coloured pens to help indentify this.)
在这个竞争激烈的市场中，典型的公司（即我们的优步司机威尔玛）不能被描述为处于长期均衡状态（即存在一个初始的不平衡点）。解释为什么会这样。为此，您可以描述短期调整为长期的过程。请参阅Wilma（公司）（面板B）和市场（面板A）。绘制相关线以显示此长期调整过程。（使用不同颜色的笔来帮助识别这一点。

The above normal economic profit will attract other firms. This industry is very easy to enter (very low cost to set up). This will increase industry supply (shift to the right or downwards purple line). The equilibrium market price will lower, which will lower the price for the typical individual Uber driver ( a price-taker). Some Uber drivers (i.e firms) will not survive and exit, especially if the price remain below these individuals ATC curves. The remaining drivers will make zero economic profit. In the Long- Run: P = MR = MC = ATC (i.e. lowest point of ATC curve) (depicted by light blue line). The diagram below shows the long-run situation with zero economic profits.
上述正常经济利润将吸引其他公司。这个行业非常容易进入（建立成本非常低）。这将增加行业供应（向右或向下移动紫色线）。均衡市场价格将降低，这将降低典型的个人优步司机（价格接受者）的价格。一些 Uber 司机（即公司）将无法生存并退出，特别是如果价格保持在这些人的 ATC 曲线以下。其余的司机将获得零经济利润。从长远来看：P = MR = MC = ATC（即 ATC 曲线的最低点）（用浅蓝线表示）。下图显示了经济利润为零的长期情况。

Question Three

Refer to Figure 2 (over page). This is now the opposite scenario. The firm (Wilma) is making a loss because the price is less than the ATC. Other firms which are identical to this are also making losses. Many leave the industry. There is now less market supply so prices rise. For the firms that remain (assume Wilma), price is soon equal to ATC and zero economic profits are made.
请参阅图 2（翻页）。现在的情况正好相反。该公司（Wilma）正在亏损，因为价格低于ATC。与此相同的其他公司也在亏损。许多人离开了这个行业。现在市场供应减少，所以价格上涨。对于留下来的公司（假设威尔玛），价格很快就会等于ATC，经济利润为零。

Now let’s assume that in this market there is a seasonal drop in demand, for example because it is a non-holiday period and people are not going out at night as much so not demanding as many Uber services. The typical Uber driver (as in the diagram below ) is now making a loss.
现在让我们假设在这个市场中，需求会季节性下降，例如，因为这是一个非假期，人们晚上不会出门，所以不需要那么多的优步服务。典型的优步司机（如下图所示）现在正在亏损。

Based on this initial market equilibrium price, on Figure 2 panel B, draw in a demand curve for Wilma the typical Uber driver (i.e operating as a very small firm). Label the demand curve as D:0. (Note: the demand curve = marginal revenue) (See diagram next page)
基于这个初始市场均衡价格，在图2的B图中，绘制了典型的Uber司机Wilma的需求曲线（即作为一家非常小的公司运营）。将需求曲线标记为 D：0。（注：需求曲线=边际收入）（见下页图表）

Next identify Wilma’s short run loss minimising level of output (e.g. number of rides per week) and clearly label this as Q:0 (See diagram, where MR = MC)
接下来，确定 Wilma 的短期损失最小化产出水平（例如每周骑行次数），并将其明确标记为 Q：0（见图，其中 MR = MC）

Identify the level of economic loss that Wilma will be making by shading the apropriate area (box) and labelling it as LOSS. Light Red box; It is where MR = MC)
通过对适当区域（框）进行阴影并将其标记为 LOSS，确定 Wilma 将造成的经济损失水平。浅红色框;这是 MR = MC）

Using additional drawings on Figure 2, explain the long run adjustment process.
使用图 2 上的其他图纸，说明长期调整过程。

The economic losses will result in some drivers leaving the Uber industry . Just as it was very easy for an individual driver to enter, it is also low cost to exit. This will decrease industry supply (shift to the left or upwards).The market equilibrium price will eventually increase, which will increase the price and MR for the typical individual Uber driver ( a price-taker). Ceteris paribus, the remaining drivers will make zero economic profit. In the Long Run: P = MR = MC = ATC (i.e. lowest point of ATC curve) . The new long-run demand curve is shown as the thick blue line demonstrating zero economic profits because is touches the lowest point of the ATC where it equals MC.
经济损失将导致一些司机离开优步行业。就像单个司机很容易进入一样，退出的成本也很低。这将减少行业供应（向左或向上移动）。市场均衡价格最终会上涨，这将增加典型的个人优步司机（价格接受者）的价格和 MR。在平等的情况下，剩余的司机将获得零经济利润。从长远来看：P = MR = MC = ATC（即 ATC 曲线的最低点）。新的长期需求曲线显示为粗蓝线，表示经济利润为零，因为它触及了 ATC 的最低点，该点等于 MC。

End of Workshop Perfect Competition
工作坊结束 完美竞赛