Sunday, January 30, 2005
Story relay?
"Apples became common in Earth once again. This can be seen from the fact that an apple cost more than a pear." - Wicked.
Oi, Wicked, foul liao lah. Bloody hell. Trying to con me right? If apple is so common, the supply will be more than the demand and prices of apple will drop!!!!!! Hence, apple will cost less than a pear lah. I cant understand a nutcase about ur bloody essay leh. Hopeless gonecase filthy piece of essay. As such, I m proclaimed the winner of this story relay.... The proof is shown below, to convince the bloody Wicked that he's a loser.
Mathematical proof: (Fmaths+Econs stuff)
Suppose on the contrary that apples are very common (free good) on Earth,
Then Price of apple = MC
Hence, OC of apple = 0, since apples are of relative abundance of Earth.
The cost of an apple measured in the next best alternative forgone is zero.
However, Ppear > 0 because it is not of relative abudance.
Since Ppear > 0 while Papple = 0
Ppear > Papple for all values of P. P is a subset of all real numbers.
This is clearly a contradiction, since Papple > Ppear. Hence apples are not common on Earth. (QED)
However, because an apple of day keeps the doctor away,
MSC = MPC + Ext. cost
If take left to the society, the ext. cost would not be considered. Q1 - Q* > 0, implying overproduction in a pure market economy.
Hence govt interference i.e. in the form of tax by govt. to internalize ext cost, is required to prevent overproduction. If left to market forces, MSC = MPC hence there will be overconsumption, which is undesirable to the society.
Moral of the story, since apples are so complicated and troublesome and involves so many mathematical and economics calculation, which could not be understood, buy pear instead. It's so much more convenient.
Oi, Wicked, foul liao lah. Bloody hell. Trying to con me right? If apple is so common, the supply will be more than the demand and prices of apple will drop!!!!!! Hence, apple will cost less than a pear lah. I cant understand a nutcase about ur bloody essay leh. Hopeless gonecase filthy piece of essay. As such, I m proclaimed the winner of this story relay.... The proof is shown below, to convince the bloody Wicked that he's a loser.
Mathematical proof: (Fmaths+Econs stuff)
Suppose on the contrary that apples are very common (free good) on Earth,
Then Price of apple = MC
Hence, OC of apple = 0, since apples are of relative abundance of Earth.
The cost of an apple measured in the next best alternative forgone is zero.
However, Ppear > 0 because it is not of relative abudance.
Since Ppear > 0 while Papple = 0
Ppear > Papple for all values of P. P is a subset of all real numbers.
This is clearly a contradiction, since Papple > Ppear. Hence apples are not common on Earth. (QED)
However, because an apple of day keeps the doctor away,
MSC = MPC + Ext. cost
If take left to the society, the ext. cost would not be considered. Q1 - Q* > 0, implying overproduction in a pure market economy.
Hence govt interference i.e. in the form of tax by govt. to internalize ext cost, is required to prevent overproduction. If left to market forces, MSC = MPC hence there will be overconsumption, which is undesirable to the society.
Moral of the story, since apples are so complicated and troublesome and involves so many mathematical and economics calculation, which could not be understood, buy pear instead. It's so much more convenient.
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