Reference no: EM132422694

1. What are the characteristics of a purely competitive market?
2. How are price and output levels determined in the overall market and for the individual firm? Why is a purely competitive firm called a "price taker." Explain how such a firm will decide how much to produce and what to charge in order to maximize its profits or minimize its losses. Why does marginal cost determine the willingness of a firm to sell at differing prices? What is the maximum amount any firm should be willing to lose?
3. In addition to purely competitive firms, what other kinds of companies are also "price takers?" Explain how they would decide how much to charge and how much to produce in order to maximize profits or minimize losses?
4. What is a monopoly? What creates a monopoly?
5. How should the monopolist determine how much output should be produced, and what price to charge if (s)he wants to maximize profits or minimize losses? What kind of data are needed? Be specific.
6. If a monopolist suffers an economic loss in the short run, should (s)he continue to produce output? 
7. Explain how price and marginal revenue are related for a monopolist. Give an example.
8. profits/minimize losses? What is the profit or loss? 
9. What are the characteristics of a monopolistically competitive industry?
10. How should monopolistically competitive firms decide on how much to produce and how much to charge? What kind of data will they need?
11.  What is an oligopoly? Explain fully.
12. Explain the Public Interest (Market Failure) theory view of why business is regulated. When and why are businesses regulated?
13. Explain the Public Choice (Economic Interest) theory view of why business is regulated? When and why are businesses regulated?
14. Do the two theories above differ in terms of their judgments of the proper role of government regulation? How so?
15. What is a public good? Why do markets perform poorly in providing public goods? What government regulations are needed in the case of public goods?
16. What are negative externalities? Why do unregulated markets perform poorly when negative externalities are present? Illustrate one example using the supply & demand model.
17. What are positive externalities? Why do unregulated markets perform poorly when positive externalities are present? Illustrate one example using the supply & demand model.