Review for the Second Test

Chapter 9

Know the Production function

Know difference between fixed and variable inputs

Know how to draw the production function.

Understand and be able to calculate Total, Marginal and Average Product

Be able to graph all of these curves

Understnd the relationships between these concepts

Understand production in the long run

Be able to show and use the formula for MRTS

Understand Returns to Scale

Chapter 10

Understand the different cost curves – Total cost, Average Total Cost, Average Variable Cost, Average Fixed Cost, Marginal Cost long run and short run

Be able to calculate the cost curves

Be able to graph the cost curves

Understand relationship between cost curves and the structure of the industry

Chapter 11

Know what conditions are necessary for perfect competition.

Know how to calculate the Profit Maximizing point for PC

Shutdown condition

Supplu Curve

Efficiecy

Producer Surplus

Long Run

Elasticity

Chapter 12 – NOTE: The sections dealing with Price Discrimination were skipped

Sources of Monopoly

Profit Maximizing Points

No supply curve

Public Policy

Chapter 13 – NOTE: There will be no problem solving per se from this chapter.

Cournot, Bertrand and Stackelberg Oligopoly

The fundamental and differences of the Oligopolies, and their relationships to PC and Monopoly