Study_Guide_Econ_1B_Final_Fall_2006

Study_Guide_Econ_1B_Final_Fall_2006 - Fall 2006 J Kea Study...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon

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

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Fall 2006: J. Kea Study Guide for Econ 1B (Micro) Final (See study guide for Econ 1B midterm for list of concepts in first part of the course) Monopolistic competition: definition, characteristics • Profit max. rule & profit maximization in short run vs. long run (which does not occur at minimum of ATC curve) • Product differentiation: definition, role of advertising and its pros & cons • Price discrimination: definition and capturing of consumer surpluse Oligopoly: definition, characteristics • Determinants & measures of market power (concentration ratio, Herfindahl-Hirshman Index) • Sources of market power (also applies for monopolies) • Interdependence of oligopolists & models of oligopoly behavior: cartels & open collusion, tacit/covert collusion, price leadership, cutthroat competition & kinked demand curve • Using profit maximization rule leads to “sticky” prices and use of advertising Market failures & what society can do to achieve optimal outcome: definition of market failure...
View Full Document

This note was uploaded on 04/27/2010 for the course ECON 1B taught by Professor Jamie during the Spring '06 term at West Valley.

Page1 / 2

Study_Guide_Econ_1B_Final_Fall_2006 - Fall 2006 J Kea Study...

This preview shows document pages 1 - 2. Sign up to view the full document.

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