Final Exam Dates

1
Final Exam Dates Times

• MW 130 Class Mar 27(Tues) 145pm-345pm
• MW 330 Class Mar 29(Thur) 400pm-600pm

2
Review For final

• Definition, Shape of the AVC, ATC and MC Curves
  in the Short Run Law of Diminishing Returns
• Long run Cost Curves
• Shape of the curves Economies Diseconomies of
  Scale
• Different Plant Sizes Structure of Industry
• Read Ch 9, Ch10 P234-238and Lectures

3
Review For final

• Different Market Structures Perfect Competitive
  firm Perfectly Competitive Industry Shape of
  their demand curves
• Firm Price taker, Only Decision is to decide
  How much to Produce
• Profit Maximization Rule MR MC
• Read Ch 11 and Lectures

4
Review For final

• Short Run Profit Maximization
• Decision to keep operating or shut down in Short
  Run depends on Relationship between P AVC
• When is it better to declare bankruptcy rather
  than shutting down in the Short run?
• Read Ch 11 Handout on Bankruptcy from Website
  and Lectures

5
Review For final

• Relationship between Marginal cost supply
  curve.
• Long Run adjustment to short Run Position
• Only Normal Profits P ATC
• Perfect Competition efficiency Productive
  Allocative
• Definition characteristics of Monopoly
• Read Ch 11 and Lectures

6
Review For final

• Definition characteristics of Monopoly
• Decision Making Decide on Output/ Price
• Shape of the Demand Curve, MR lt AR
• P lt MC, Output lower Price higher in Monopoly
• Natural monopoly Causes Control
• Regulation Deregulation, Examples
• Myths about Monopolies
• Read Lectures and Ch 12

7
Review For final

• Monopolistic Competition Definition
  Characteristics
• Short Run Profits Losses
• How far it resembles Monopoly how does it
  resemble Perfect competition
• Long Run Normal Profits but what about
  Allocative Productive Efficiency
• Critical Evaluation of Statements
• Read Ch 13 pp 297-305 and Lectures

8
Review For final

• Different models Prisoners Dilemma model, Price
  Leadership model, Cartel Collusion, Kinked
  Demand Curve Model
• Advertisement, Mergers Herfindahl Index
• Externalities, Positive and Negative Externality,
  Rule for Social Optimum Allocation Of Resources
  modified in presence of externality
• Internalize Externality, Coase Theorem
• Read Ch 13,
• Read Ch 15 P 355-362
• Read Ch 18 pp 422-429 and Lectures