What are the rules that a monopolist will follow to determine the profit of the
maximizing quantity and the profit maximizing price?
a graph containing the monopolist’s demand, marginal revenue, average cost and
marginal cost curves, how would you identify the profit maximizing quantity,
the profit maximizing price, the monopolist’s economic profit and the
economically efficient level of output?
Relationship between the monopolist’s demand and marginal revenue schedule.
is the marginal revenue schedule?
are characteristsics of monopolist competition?
of entry of new firms into a monopolistically competative market on the demand
curve and economic profit of a firm that is already in the market.
is a kinked demand schedule?
9. How to
read a payoff matrix and identify dominant strategy.
is the antitrust poilicy?
to compute the Hirschman- Herfindahl index?
Efficiency vs. Inefficiency
for determining the efficient (socially optimal) level of output of a good.
is the impact of imperfect competition and price ceilings of a good. How does
this level of output compare with the efficient (socially optimal) level?
External costs and benefits: provide examples of actual situations where the
production or consumption of a good causes external costs and benefits
how the social marginal curve is derived; be able to identify the efficient
level of output; be able to identify the market level of output; determine
whether the good is being over or under produced.
Policies that can be used to deal with activites that create external benefits.
labor productivity data for two goods from two countries, you should be able to
identify which good a country will export and which good it will import.
should be able to identify the range within the equillibrium terms of trade
a value for the terms of trade, you should be able to derive each country’s
consumption possibilities frontier after trade opens up.
22. If a
country has the ability to import a good from the rest of the world a price
that is lower than the price that would prevail in isolation, you should be
able to determine what will happen to the level of domestic consumption and
should understand what a tarrif is and what a quota is and how the imposition
of a tarrif or quota affects domestic production and consumption.