Reference no: EM131574514

1. What are the rules that a monopolist will follow to determine the profit of the maximizing quantity and the profit maximizing price?

2. Given 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?

3. Relationship between the monopolist's demand and marginal revenue schedule.

4. What is the marginal revenue schedule?

5. What are characteristics of monopolist competition?

6. Impact of entry of new firms into a monopolistically competitive market on the demand curve and economic profit of a firm that is already in the market.

7. Define oligopoly.

8. What is a kinked demand schedule?

9. How to read a payoff matrix and identify dominant strategy.

10. Nash equillibrium?

11. What is the antitrust policy?

12. How to compute the Hirschman- Herfindahl index?

13. Efficiency vs. Inefficiency

14. Rule for determining the efficient (socially optimal) level of output of a good.

15. What 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?

16. External costs and benefits: provide examples of actual situations where the production or consumption of a good causes external costs and benefits

17. Know 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.

18. Policies that can be used to deal with activites that create external benefits.

19. Given 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.

20. You should be able to identify the range within the equillibrium terms of trade will fall.

21. Given 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 production.

23. You 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.