Assume that you are very familiar with the concept opportunity cost. Your
textbook was developed for people who have no economics background,
hence the amount of review. You should find Chapter 3 and 4 relatively
straightforward, as they are mostly review and only provided to help people
with no background in economics.
In this section we will focus on p. 51 and Figure 3 – 6 (a) that illustrates a
discrete marginal cost curve. Please note that most of the answers to the
below questions can be found in your textbook. So you can compare your
own answers to what is in your textbook in most cases.
• What does marginal cost (MC) mean? Does it just mean that it costs this
amount to produce this unit of the product or does it mean more than that?
It means more than that. If we cannot sell our good for at least this price,
we would make a loss on this unit. Therefore, marginal costs tell us the
price we need to see in the market to produce this amount of output. Note
we are price-takers.1
• How much is this producer’s marginal cost (MC) for the fifth kilogram of
organic apples?
$3
1 How do I know that? The graphs tell me this.
2
• How much is this producer’s total cost [C] for five kilograms of organic
apples?
~$11.67
In this section we will focus on p. 51 and figure 3 – 6 (b) that illustrates a
continuous marginal cost curve. Please note that most of the answers to
the below questions can be found in your textbook. So you can compare
your own answers to what is in your textbook in most cases.
• How much is this producer’s marginal cost (MC) for the fifth kilogram of
organic apples?
• How much is this consumer’s total cost [C] for five kilograms of organic
apples?
• Now compare your answers to marginal costs with the discrete function
and the continuous function? Are they the same? Why or why not?
• Now compare your answers to total costs with the discrete function and the
continuous function? Are they the same? Why or why not?
They are not the same. With the continuous function, total costs are
~$0.83 more than with the discrete function.
In this section we will focus on pp. 52 – 54 and Figure 3 – 7 (a) & (b) which
illustrate two producers’/orchards’ marginal cost curves. We are then told
that we can take this information and use it to get the market/ aggregate supply
curve Figure 3 – 7 (c). But before we go any further, I am assuming that you
really understand supply. So let’s do some review to make sure that this is the
case. If you are not sure of the answers in this review, you need to do some
review on your own, and look through your economics notes.
3
P
Qs
Question using your math knowledge, is the above graph showing that:
P = f (QS
) or Qs = f (P)?
In your economics education, you learned about the law of supply.
Question using your economics knowledge, is the law of supply telling us that
the relationship between price and quantity on the supply side is: P = f (Qs
) or
QS = f (P)?
So, given your answer here, you now realize that this is what a true supply curve
would look like.
QS
P
So what we drew earlier is actually the inverse supply curve. But we often refer
to it as the supply curve though technically it is not.
S
S
4
Now, back to the market/aggregate supply for organic apples. We are given the
supply functions and the (inverse) supply curves for Orchard 1 and Orchard 2.
To derive the market/aggregate supply curve we add our individual producers’
supply curves horizontally, making sure first that they have the same vertical
intercept. If they do, we add them horizontally. If they do not, we can only add
the portion of each curve where both are producing the good. Unlucky for us, we
cannot just add these curves horizontally. From a price of $1.33 per kilogram, we
use Orchard 1’s supply curve. Greater than a price of $2 per kilogram, we use
the market/ aggregate supply curve.
Just a heads up I prefer to use the term ‘market’ rather than ‘aggregate’. Why?
A lot of students think we are talking about macro when we use the term
aggregate. We are definitely not using macro here…..
The last section of the chapter examines how a technological change affects the
costs of producing a product. Use the letters in the Figure 3 – 8 on p. 55 to
answer the below questions.
• Prior to the technological change, it costs _____ to make q* units of the
product.
• After the technological change, it costs _____ to make q* units of the
product.
• The reduction in costs due to the technological change is _____.
Make sure you know how to calculate change. One semester all of my students
in all of my classes got it wrong.
Change = (what is true now − what was true in the past)
Change in costs = (costs now − costs in the past)
Reduction in costs = − (costs now − costs in the past)
Cost Savings = − (costs now − costs in the past)
5
The last thing I want to look at is the two ways we use supply curves.
One way is to choose a price, and then, see how much producers are willing and
able to produce at this price.
P
P0
QS
0 QS
The second way is to choose a quantity, and then, see the minimum price
producers need to produce this unit of a product. This tells us the cost of this unit
of the product.
P
P1
Qs
1 QS
If these two very different ways of using supply look the same to you, please look
closer.
Also the function you are using tells me which way you are using your supply
curve, i.e., QS = f (P) to find the first answer and MC = f (Qs
) to find the second.
John L. Sullivan Fights America
GuidesorSubmit my paper for investigation
By Christopher Klein
john sullivan paintingA thick expanse of mankind slurped up to the doorstep of John L. Sullivan’s plated alcohol royal residence. Heads extended and tilted as swarms of Bostonians endeavored to take a passing look of their old neighborhood saint through the open entryway. Inside, a perpetual progression of well-wishers offered their goodbyes to America’s dominant heavyweight boxing champion.
Sullivan’s dim, penetrating eyes glimmered with the impressions of the flashing gaslights. His clean-shaven jawline shimmered like cleaned rock, in spite of the fact that murkiness covered up in the openings of a profound dimple and in the shadow of his brilliant handlebar mustache. Sullivan’s immaculate skin, full arrangement of even teeth, and straight nose misrepresented his calling and unmistakably vouched for the failure of enemies to lay a licking on him. Solid without being muscle-bound, the “Boston Strong Boy” was built like a pugilistic result of the Industrial Age, a “superb motor of demolition” show in fragile living creature and blood.
In the wake of soaking up the hero worship inside his cantina on the night of September 26, 1883, the hard-hitting, hard-drinking Sullivan swam through the crowd of groveling fans outside and ventured into a holding up carriage that dashed him away to a holding up train. The man who had caught the heavyweight title nineteen months earlier had withdrawn on numerous excursions previously, however no man had ever set out on such an aggressive experience as the one he was going to attempt.
For the following eight months, Sullivan would circle the United States with a troupe of the world’s top proficient warriors. In about 150 regions, John L. would fight with his kindred pugilists, yet in addition present a shocking curiosity act deserving of his contemporary, the actor P. T. Barnum. The authoritative heavyweight champion would offer as much as $1,000 ($24,000 in the present dollars when tied to the Consumer Price Index) to any man who could enter the ring with him and essentially stay remaining following four three-minute rounds.
The “Incomparable John L.” was moving America to a battle.
Sullivan’s cross-country “taking out” visit was superbly American in its daringness and idea. Its majority rule bid was unquestionable: any novice could tackle greatness by taking a punch from the best contender on the planet. Besides, the test, given its understood braggadocio that vanquishing John L. in four rounds was an all inclusive impossibility, was an exceptional explanation of preeminent fearlessness from a twenty-four-year-old who as far as anyone knows roared his own affirmation of autonomy: “My name is John L. Sullivan, and I can lick any bastard alive!”
The “taking out” visit opened in Baltimore on September 28 preceding thirty-500 excited battle fans who filled Kernan’s Theater. No crowd part tested Sullivan on premiere night, however a “vacillate of energy” palpitated through the boxing “extravagant” when the victor wore gloves to fight with the group of stars of boxing’s most splendid stars who included the “Incomparable John L. Sullivan Combination.”
In the wake of premiere night, it was onto Virginia and Pennsylvania. The regions began to obscure by—Harrisburg, Scranton, Lancaster.
John L. at long last experienced his first challenger in McKeesport, Pennsylvania. Neighborhood slugger James McCoy resembled the quintessential extreme person. Tattoos of snakes, blossoms, and a wide-mouthed mythical serpent put his expansive chest. The 160-pounder’s looks demonstrated beguiling, notwithstanding. After McCoy opened with a frail blow, the victor required just a privilege and a left. The battle was over in simple seconds. “I never figured any man could hit as hard as he does,” McCoy said a while later. “In any case, I can say what hardly any men can, that I battled with the victor of the world.”
What’s more, that is accurately why the “taking out” visit created extraordinary exposure in papers around the nation, both for Sullivan and the whole game of boxing. Not exclusively was the best warrior on the planet carrying the game to the majority, he was letting the majority get in the ring with him!
Youngstown. Steubenville. Terre Haute.
In Chicago, the groups were thick to the point that the Combination pulled in about $20,000 in two evenings. In St. Paul, Minnesota, Sullivan at long last confronted a rival who could coordinate him pound for pound. When time was called, Sullivan loosened up his arm, and six-foot-tall railroad engineer Morris Hefey, who weighed 195 pounds, “fell on the phase as though struck by a hatchet.” The challenger rose, yet when he was inside arm’s compass of the boss, he was down once more. The battle took thirty seconds. “In the event that you need to recognize what it is to be struck by lightning,” the challenger said a short time later, “simply face Sullivan one second.”
McGregor. Dubuque. Clinton.
In Davenport, metal forger Mike Sheehan, the “most grounded man in Iowa,” told his family that he was going to go head to head with the hero. Sheehan’s distracted spouse visited Sullivan before the battle and implored him not to battle her significant other, yet not for the explanation the boss suspected. “We have five little kids, and I don’t need them to have a killer for a dad. In the event that you get into a battle with him, he’ll without a doubt slaughter you,” she cautioned the hero.
John L. took his risks, entered the ring, and began with a raving success to the nose of the staggered challenger. Sheehan’s unexpected went to seethe. He charged at Sullivan. A major clout on the jaw by the hero sent his enemy turning to the rear of the stage, and the challenger chose he had taken enough discipline. Sullivan sent Sheehan away with $100 for being down.
Muscatine. Omaha. Topeka.
As the Combination shook into Colorado at Christmastime, their train climbed the Rocky Mountains. Sullivan’s exceptional cross-country visit and his navigate of the West would not have been conceivable without one of the mechanical wonders of the age: the railroad. Just fourteen years had sneaked past since the driving of the Golden Spike wedded the Union Pacific to the Central Pacific and fortified the country’s railroad framework together. In the decade somewhere in the range of 1870 and 1880, railroad mileage in the United States nearly multiplied from almost fifty thousand to more than eighty-7,000. In the West, be that as it may, mileage dramatically multiplied.
The railways were amazing images of the modern may of Gilded Age America. “The old countries of the earth creep on at an agonizingly slow clip; the Republic roars past with the surge of the express,” composed steel tycoon Andrew Carnegie of the crude vitality that stirred the United States during the 1880s. That equivalent unpleasant fire of youth consumed inside Sullivan and impelled him like a “living train going at max throttle.”
Indeed, maybe no American has so encapsulated his circumstances such as John L. The United States was the quickest developing nation on the planet. Its populace would before long overshadowing that of Great Britain, and it was en route to turning into the world’s driving modern superpower. The nation throbbed with the implantation of new outsiders, new industry, and new creations—phones, electric lights—that were changing day by day life.
Both Sullivan, child of Irish migrants, and the upstart United States during the 1880s, were youthful and virile, glad, presumptuous, rough, and hostile. A fighter speaks to control in its most instinctive sense, and John L. symbolized an ascendant America that was utilizing its monetary muscles on the world stage. The boss radiated a harsh manliness that spoke to the developing numbers who expected that life in an undeniably urbanized United States was getting less tough, progressively stationary. What’s more, when the undeniably well known hypothesis of social Darwinism underscored natural selection, there was no spot in America where that could be so unmistakably showed than inside a boxing ring.
The amazing soul of the battling Irish that was made substance in Sullivan changed him into a saint for the children and girls of the Emerald Isle who had felt weakened in the wake of the Great Hunger. To Irish Americans who had trusted themselves weak for quite a long time under the thumb of the British, insulted in their new country, and damaged by the awful starvation of the 1840s, here came one of their own who oozed quality, who didn’t need certainty, and who didn’t experience the ill effects of an absence of pride. His self-conviction was a solution for a people who had experienced harmful disgrace.
Common laborers Irish Americans thought of the victor as one of them: simply one more Irish guy rejecting to acquire a living with his hands, and on the “taking out” visit, Sullivan made a trip to the stations where the Irish worked in twelve, fourteen, and sixteen-hour shifts: mining towns and timber camps along railroad lines that were worked by calloused Celtic hands.
When the “Sullivan’s Sluggers” landed in the mining boomtowns of the Rockies, the fugitive component of the Wild West apparently tainted the warriors. Reports of tipsiness and fighting showed up with expanding recurrence in papers and made for incredible duplicate. On Christmas Day in Denver, Sullivan nearly killed a kindred warrior while messing with a twofold hurtle shotgun he was told was emptied. After two days in Leadville, an inebriated Sullivan swaggered—and lurched—through his exhibition and behind the stage heaved a lit lamp fuel light at another warrior following a contention. In Victoria, British Columbia, he was in “a condition of savage inebriation” and wouldn’t represent a toast to the strength of the city’s namesake, Queen Victoria, clarifying that he “wasn’t raised to seeing Irishmen toasting the wellbeing of English rulers.”
The Combination arrived at the Pacific Ocean in mid 1884. Subsequent to visiting Los Angeles, the warriors moved back in the direction of the East with Sullivan leaving a path of broken container