- Elasticity Of Demand Demand And Durability - Cyclical Industries Income Elasticities Elasticities In The Short And Long Run - Basic Assumptions About Preferences Indifference Curves And Utility MRS Equation Budget Constraint – Slope o Change In Price, Income Levels Maximizing Utility, Corner Solution Equal Marginal Principle Ideal Cost Index, Laspeyre´S, Paasche´S - Formation Of Individual Demand Curve Price-Consumption Curve Income-Consumption Curve Engels Curve (Normal, Inferior) Substitution and Income Effect Positive/Negative network externality (Bandwagon, Snob) - Endowment, Loss aversion, Framing Anchoring, Rules of thumb, Overconfidence - Inputs into production process Long/Short run Diminishing marginal returns Isoquants, Isocosts MRTS equation - Economics vs Accounting cost Sunk vs Fixed cost Total, Fixed, Variable, Marginal Expansion Path (Long/Short-run) Returns to scale (and measuring) Economies and Diseconomies to Scale (formula) Economies and Diseconomies of Scope (formula) Production or cost advantages - Three basic assumptions of perfect competition Profit Maximization (formula) Demand for a Competitive firm vs Industry Marginal Revenue and Marginal cost for a Competitive firm The Short-Run Market Supply Curve, Producer Surplus Short run Producer Surplus versus Profit Long-run Competitive Equilibrium (3 conditions) Economics Rent - Long-run Supply curve (Constant-Increasing-Decreasing Cost Industry) Effects of TAX - Consumer and Producer Surplus Price floors and price ceilings Price support, Supply restriction Import Quotas and Tariffs Taxes and Subsidies (the portion of impact) - Monopoly and Monopsony Monopoly production graph (MC, MR) The rule of Thumb for Pricing (ED formula) Measuring Monopoly/Market power (Lerner Index) Social Costs of Monopoly The Multi-plant firm Sources of Monopoly Power, Rent seeking - Monopolistic Competition and Oligopoly Monopolistic competition and Economic Efficiency Social Cost Cournot Model, Reaction Curves (formula), Nash Equilibrium, Quantity Competition The Bertrand Model, Price competition with Differentiated products Prisoner´s Dilemma, PAYOFF MATRIX Price Rigidity and Kinked Demand curve model The Dominant firm model - Noncooperative and Cooperative games Dominant Strategy Nash Equilibrium (anticipate opponents’ decision) Maximin strategy Mixed strategy - Partial vs General Equilibrium Analysis (feedback effect) Efficiency in Production – PPF, MRT = MCX/MCY Efficiency in Output Markets, MRT = MRS = PX/PY - Comparative vs Absolute Advantage Efficiency in Exchange, Use of Inputs in Production, Output Markets Market Failures: Market Power, Incomplete Information, Externalities, Public goods - The lemons problem, Adverse selection, Moral Hazard - Externality MEB, MSC, MEC, MSC MCA Fees and Standards Tradeable emissions permits Property Rights and Coase Theorem Common Property Resource Public Good (Nonrival, Nonexclusive)