Micro 14-18, 20 - Final

Micro 14-18, 20 - Final - ECO 251 Study Guide for Final...

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

View Full Document Right Arrow Icon
ECO 251 Study Guide for Final Exam Chapter 14 1 – 2. Table on page 291 1. Price and quantity sold relationship represented in the table show a “competitive market”:(Table 1 on the Page291) 2. If firm doubles the output from 3 to 6 units ______________________.(Table 1;Page 291). 3. In a competitive market no single producer can influence the market price because “many other sellers are offering products that are essentially identical”(Hint: Read below THE MEANING OF COMPETITION; Page 290). 4. Total profit for a firm is calculated as “(Price minus Average Cost) multiplied by (Quantity of Output)”: (Profit= P – ATC. Qs) 5. Short run supply curve for a firm in perfectly competitive market is “the portion of marginal cost curve that lies above the average variable cost”(Figure 3 on the Page297). 6. When perfectly competitive firm decides to shut down it is most likely that “price is below the firms average variable cost”: (Figure 3 on the Page297). 7. Definition of Sunk Cost: Page 296. 8. At profit maximizing level of output “Marginal Revenue = Marginal Cost”:(Figure 1 on the Page 294). 9. Which of the following represents firm’s long run condition for exiting the market? “Exit if Price < Average Total Cost”: (Figure 4 on the Page 299). 10. When firms in perfectly competitive market face the same costs in the long run they must be operating “at their efficient scale”: (Figure 7 on the Page303). Chapter 15 1. When a firms average total cost curve continually declines the firm is a “natural monopoly”:(See Graph on page 314). 2. Fundamental cause of monopolies is “Barriers to entry”:(Second sentence of the first paragraph below WHY MONOPOLIES ARISE on the Page 312). 3. For a profit maximizing monopolist “Price > Marginal Revenue = Marginal Cost”(Page 320). 4 - 6. Questions on graph – similar to graph in study guide on page 238(Study Guide; Unit Three on the Blackboard, Figure 5;Page321 on the Textbook). 4. Find total revenue. Formula is (Price x Quantity Sold) 5. Find total cost. Formula is (Average Total Cost x Quantity Sold) 6. Find total profit. Formula is (Price minus total average cost) x (Quantity sold)
Background image of page 1

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

View Full DocumentRight Arrow Icon
7. Question on graph. Which area represents deadweight loss due to monopoly pricing?( Page 325 Figure 8). 8. One problem with regulating a monopolist on the basis of cost is that “it does not provide an incentive for a monopolist to reduce its cost”:( Page 336, Figure 10). 9. Antitrust laws allow the government to “all the above”:( Read everything
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/22/2011 for the course ACCT 3551 taught by Professor Brown during the Spring '11 term at UNC.

Page1 / 5

Micro 14-18, 20 - Final - ECO 251 Study Guide for Final...

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