Final Exam – Ch. 13-17 Ch. 13 Costs of Production Short-run vs Long-run Costs – differences SR -> Fixed Costs present -> LR -> all costs variable LR cost curve envelope of all possible SR cost curves – and least cost Supply curve = MC curve Minimum price, or starting pt, for SR and LR cost curves Economies-of-Scale, Constant Returns to Scale, Diseconomies of Scale Natural Monopolies (EOS) Ch. 14 Perfectly Competitive Markets Basic Assumptions Nr. Of Buyers/Sellers Entry (free or barriers?) Type of product (same or differentiated) Price-taker or price-searcher How do they determine what output to produce Can a PC firm set the price for its product? Allocative Efficiency, Productive Efficiency, Incentive for Tech Innov – compare to other market types Ch. 15 Monopoly Basic Assumptions Nr. Of Buyers/Sellers Entry (free or barriers?) Type of product (same or differentiated) Price-taker or price-searcher What’s different about how a monopolist sets price than PC How do they determine what output to produce Allocative Efficiency, Productive Efficiency, Incentive for Tech Innov – compare to other market types Anti-trust Behavior – how do we attempt to regulate Monopolies to improve economic efficiency Ch. 16 Monopolistic Competition Basic Assumptions Nr. Of Buyers/Sellers Entry (free or barriers?) Type of product (same or differentiated) Price-taker or price-searcher How is a MC firm similar to PC firm? Different from a PC firm? How is a MC firm similar to M firm? Different from a M firm? How does a MC firm get market power? Compare their market power to a Monopolist (what would you use to measure the difference) How do they determine what output to produce Allocative Efficiency, Productive Efficiency, Incentive for Tech Innov – compare to other market types Ch. 17 Oligopoly Basic Assumptions Nr. Of Buyers/Sellers Entry (free or barriers?) Type of product (same or differentiated) Price-taker or price-searcher What would it take for an Oligopoly to behave like a Monopoly? When would they behave more like a PC market? (Game Theory situation) What is a cartel? What are the incentives that might break up a cartel? Under what circumstances would a market outcome (equilibrium) be stable? Under what circumstances would a market outcome (equilibrium) be unstable? How do they determine what output to produce Allocative Efficiency, Productive Efficiency, Incentive for Tech Innov – compare to other market types