This paper explains why monopolists do not necessarily obtain profit. It also reveals the true picture of average cost pricing. It concludes that protected businesses must eventually become both stupid and wasteful, and that state-owned monopolists are the ugliest one

This paper shows how Poterba, like many others, tries to use a non-existing demand and supply model to explain housing price. Instead, this paper derives the housing demand and supply functions without combining them into one single graph. The ungrouped functions offer clearer picture with...

This paper completes Krugman's unfinished work: the model of currency crises. A crisis occurs when there are two different prices for the same product, and people on the street will take advantage of the situation to arbitrage for profit. The reason for the dual-price situation is that some...

This paper reestablishes Hayek's assertion that buying a new overcoat will reduce output and unemployment. It is because the spending is like pulling rice plants to help them grow: it simply kills the plants. The proper way to encourage more output, and hence to enjoy more consumption, is by...

This paper proves that the current definitions of GDP are the result of assuming three zeros: depreciation, interest and profit. Such measures may report exaggerate positive income, even though the true income is negative. This paper supports Choi's (2009) finding that Keynes' measure of income...

This paper disproves the U-shape long run average cost curve, for a firm must choose its lowest point to operate from the outset. It also clarifies the meaning of short and long run. Instead of using these layman jargon, professional economists should employ calculus to solve for partial or...

This paper disproves the existence of the AD and AS curves. When each product has market equilibrium from its demand and supply, the monetary summation of all products equilibria is only a number without any relational implication. This paper kills an unscrupulous evil

This paper attempts to achieve three targets: First, to prove that Tiebout's local expenditure theory is wasteful; Second, to show how private firms can efficiently supply public goods; Third, to work out the optimal pricing policy for using public goods. In addition, this paper rejects setting...

This paper proves that Nash's exchange theory leads to inefficiency. Instead of coming to a vertex, the exchange leads to polarization. This paper questions Nash's method of exchange and suspects that his theory is not about bargaining

Nash (1950) proposes a bargaining theory. This paper proves that Nash's theory leads to unfair result. The reason for the wrong conclusion is his use of utility. This paper then recommends the old Jewish method described in Talmud for fairer solution