ECONOMICS 2306 - Baylor University.docx

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1、ECONOMICS 2306REVIEW SHEET FOR EXAM IIThe following is a thorough but not exhaustive list of the concepts you need to have mastered for the exam. You should know definitions of terms; formulas and how to use them; graphs, what they represent, and how to read them; tables and how to work with them.CH

2、APTER 7Profit: accounting profit; economic profit; normal profit; explicit and implicit costs; total profitShort run and long run; variable resources and fixed resourcesTotal product, production function, marginal product: definitions; increasing and diminishing marginal returns; law of diminishing

3、marginal returns; total product and marginal product graphsCosts: fixed cost, variable cost, total cost; marginal cost; average fixed cost, average variable cost; average total cost. Know how to calculate each of these costs; know how to graph each of these costs. Know the relationship between total

4、 product and total cost; know the relationship between marginal product and marginal cost. Understand the relationship between marginal cost and average variable cost and between marginal cost and average total cost.Long run average cost curve: definition; graph; economies of scale, constant long ru

5、n average cost, and diseconomies of scaleCHAPTER 8Perfect competition: features; why the firm is a price taker; reason for the shape of the firms demand curveProfit-maximizing level of output: know how to use the total approach to determine the profitmaximizing or loss-minimizing level of output and

6、 the firms total profit or total loss; know how to use the total approach when given a data table; know how to read the TR and TC graph; know what the TR and TC graphs would look like for a perfectly competitive firm earning a profit, breaking even, producing to minimize losses, and shutting downPro

7、fit-maximizing level of output: know how to use the marginal approach by applying Rule #1 and Rule #2 to determine the profit-maximizing or loss-minimizing level of output; know how to use the marginal approach when given a data table; know how to find the profit or loss per unit; know what the grap

8、hs would look like for a perfectly competitive firm earning a profit, breaking even, producing to minimize losses, and shutting down; know how to find the firms short-run supply curve and how to use firms short run supply curves to generate the industrys short run supply curvePerfect competition in

9、the long run: know what will cause entry into and exit from the industry; know why in the long run the firm in perfect competition will earn only zero economic profitCHAPTER 9Monopoly: features; types of entry barriers; why the monopolist is a price maker; shapes of the demand, total revenue, and ma

10、rginal revenue curvesProfit-maximizing level of output: know how to use the total approach to determine the profitmaximizing or loss-minimizing level of output and the firnfs total profit or total loss; know how to use the total approach when given a data tabic; know how to read the TR and TC graph:

11、 know what the TR and TC graphs would look like for a monopoly firm earning a profit, breaking even, producing to minimize losses, and shutting downProfit-maximizing level of output: know how to use the marginal approach by applying Rule #1 and Rule #2 to determine the profit-maximizing or loss-mini

12、mizing level of output; know how to use the marginal approach when given a data table; know how to find the profit or loss per unit; know the graphs for a monopoly firm earning a profit, breaking even, producing to minimize losses, and shutting down; remember that when reading the graph for a monopo

13、list, you go to the demand curve to find the price of the product!Monopoly in the long runCompare and contrast monopoly and perfect competilionPrice discrimination and role of elasticity of demandCHAPTER 10Monopolistic competition: characteristics; forms of product differentiation; why the firms is

14、a price maker; shape of the demand and marginal revenue curvesProfit maximization or loss minimization: know how to use the total approach to determine the profit-maximizing or loss-minimizing level of output; know how to use the marginal approach by applying Rule #1 and Rule #2 to determine the pro

15、fit-maximizing or lossminimizing level of output; know the graphs for a monopolistically competitive firm earning a profit, breaking even, producing to minimize losses, and shutting down; know how to find total revenue, total cost, profit per unit, and total profit; remember that when reading the ma

16、rginal-approach graph for a monopolistically competitive firm, you go to the demand curve to find the price of the product!Monopolistic competition in the long runCompare and contrast monopolistic competition and perfect competitionOligopoly: characteristics; importance of interdependence; collusion and cartels; price leadershipCompare and contrast oligopoly and perfect competition