.review test 2 econ 224

.review test 2 econ 224 - 7 REVIEW TEST2 ECON 224 SECTION...

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Unformatted text preview: ' 7 REVIEW .- TEST2 . .- . ECON 224 SECTION .. pa . ' I I Ter ‘56? x ‘- COSTS: INCLUDE EXPLICIT AND V uayé— m; ' IMPLICITCOSTS ' *' ' ’ I. SHORT LONG RUN F mvuz, ' r ~CONCEPTS V. 91,—} .- DIMINISHING RETURNS TO 3 7 " m. ‘ - ,. VARIABLE INPUT GIVES COST -.7 . - - CURVES THEIR SHAPE 1.. ~ ' ‘ .- DIFINE VARIOUS MEASURES OF Pm- u; - 1 COST: TC, ATC, AFT, AVC, MC: ' '- RECOGNIZE ANDLABEL‘VARIOUS . .- _ f . SHORTRUNCOST CURVES - PWWQ .- ECONOMIES ANDEISECONOMIES mo ' g - OF SCALEINTHELONG RUN 4 9’ . , REVIEW (CONT.) v . 7- KNOWCHARACTERISTICSOF (3,7. .. = PERFECT COMPETITION 1? v oD=MR=PPRICETAKERS : ?. _ Q ] A. ,- PROFIT MAXIMIZWGBEHAVIORN‘“ ' ' 3“ 1” oMR=MCRULEP133-135 ' ‘ _‘. THREE SHORT-RUN CASES V _ V o P_> ATC: ’ PROFITS 4’ I375 “37 - OAVC < P <ATc: MINIMIZE LOSS ’ - I I o.P<-AVC:SHUT,DOWN' I REVIEW (CONT.) o_ PRICE PERFECTLY COMPETITIVE ] 7F :30 FIRM TAKES COMES-FROM THE amt I k MARKET (SUPPLY DEMAND) ‘ PM??? . ’ H . PERFECT. COMPETITION HAS ZERO #3 c} '_ m ' ECONOMIC PROFITS IN THE LONG 6, . RUN .' " "o DEFINE MONOPOLY - r; m CHARACTERISTICS .- . . - MONOPOLIST FACES MARKET 79:55 . 1 DEMAND ' . , I . WHAT BARRIERS TO ENTRY? 09 I54 _. WHYISMR<PEORAEIRM(LIKEA ._ MONOPOLIST) FACES A , I p 51 DOWNWARD SLOPING DEMAND , - . - CURVE? ' ' ' I ~ - RECOGNIZE THE GRAPHOEA PROFIT . . . . MAXIMIZING MONOPOLIST USING THE - MC=MR RULE (PAGE gl-FIG. -' _ - v I ' REVIEW (CONT.) ' . - KNOW CHARACTERISTICS OF . - MONOPOLISTIC COMPETITION . MARKETS A WW ' .. NATURE OF DEMAND CURVE FACED BY A FIRMIN A MONOPOLISTIC . COMPETITION MARKET '(SLOPES P- DOWN—l WHY?) - _ I. MONOPOLISTIC COMPETITION a . I ; - . CANMAKE PROFITS IN THE SHORT. p175- RUN (FOLLOW MC = MR RULE) ‘ ' ' EASY ENTRY. LEADS TO IN THE LONG RUN - ’ : ' _ - EXAMPLE OFTYPES OF FIRMS IN ‘ . ONOPOLISTIC COMPETITION ._ P13“: MARKETS ' 5 .OLIGOPOLY: FEWNESS AND V F ,3 ,‘ < INTERDEPENDCE- ._ I . IS A CONCENTRATION RATIO? pars: l m 477] _ I REVIEW(CQNT.) -' UNDERSTAND KINKED IDEA 1 ' (MUTUALINTERDEPENDENCE 0F. . Nbfii ‘ ‘ OLIGOPOLISTS) . ' - - _.». KNOW SOME EXAMPLES. OF TYPES OF P ,3, , ~ FIRMSINOLIGOPOLY- MARKETS ; -. = ' _ ...
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This note was uploaded on 02/10/2011 for the course ECON 224 taught by Professor Ozturk during the Fall '09 term at South Carolina.

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.review test 2 econ 224 - 7 REVIEW TEST2 ECON 224 SECTION...

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