Exam2 - -Profit maximization condition for a competitive...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
How to study for the second exam (ch. 7, 21 9, 11, 12, 13) 1. Learn the definitions - Consumer Surplus - Producer Surplus - Tariffs - Quotas - Total revenue - Total cost - Profit - Economic profit - Accounting profit - Production function - Marginal product - Diminishing marginal product - Fixed costs - Variable costs - Average total cost - Average fixed cost - Average variable cost - Marginal cost - Efficient scale - Economies of scale - Diseconomies of scale - Competitive market - Average revenue - Marginal revenue - Shut-down point - Exit point - Profit maximization condition - Monopoly - Natural monopoly - Price Discrimination - Monopolistic Competition - Oligopoly
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2. Be prepared to answer questions about: - The effects of market restrictions (taxes, price floor, price ceiling, trade restrictions) on the equilibrium price and quantity, and on the consumer and producer surplus - The difference between the economic profit and accounting profit - The computation and the graphical representation of the different types of costs - Costs in the short-run versus long-run
Background image of page 2
Background image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: -Profit maximization condition for a competitive firm-Shut-down condition for a competitive firm-Exit condition for a competitive firm-Graphical representation of the cost and revenue curves of a competitive firm-The reasons why monopolies exist-Profit maximization condition for a monopolist-Monopoly output and price elasticity of demand-The welfare cost of a monopoly-Monopolistic Competition output and price-Methods used to determine industry structure-The effects of different price strategies on consumer surplus 3. Learn the following formulas:-TC = FC + VC-ATC = TC/q-AFC = FC/q-AVC = VC/q-q TC MC =-q TR MR =-TR = P*q-L q MP L = L=labor-Profit = TR TC = (P-ATC)*q Go over the problems at the back of each chapter and the practice questions posted on semester book. 4. Bring the following to the exam:-A small scantron-A calculator-A pencil and eraser...
View Full Document

This note was uploaded on 12/09/2009 for the course ECON 2030 taught by Professor Bong during the Spring '07 term at LSU.

Page1 / 3

Exam2 - -Profit maximization condition for a competitive...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online