ECN2802

Spring 2009 Review for Exam 3

Dr. Dao

· Profit maximizing Price and Quantity for Perfectly Competitive Firm

· Total revenue at the profit-maximizing output level

· Total cost at the profit-maximizing output level

· Rule for Loss Minimization

· Area representing total loss at the loss-minimizing output

· Condition for Producing in Short Run

· Short-Run Supply Curve for Perfectly Competitive Firm

· Firm and Industry Short Run Supply Curves

· Perfect Competition in Long Run

· Long Run Adjustment to a Change in Demand

· Increasing Cost Industry

· Perfect Competition and Efficiency

· Condition for Profit Maximization under Monopoly

· Profit maximizing Price and Quantity for Monopolist

· Total Revenue for Profit-Maximizing Monopoly

· Total Cost for Profit-Maximizing Monopoly

· Maximum Profit for Profit-Maximizing Monopoly

· Shut down condition for a monopolist

· Barriers to Entry into a market

· Long run profit maximization for a monopolist

· Comparison between Perfect Competition and Monopoly

· Area representing Monopoly Profit

· Welfare Loss of Monopoly

· Zero economic profit in long run for monopolistically competitive firms

· Demand curve facing monopolistically competitive firm in long run

· Monopolistic Competition and Perfect Competition Compared

· Excess Capacity under Monopolistic Competition

· Distinguishing characteristic of Oligopoly

· Examples of oligopoly

· Cartel’s Profit-Maximizing Quatity