I have a Microeconomics Quiz Due today. I am looking for a MicroEconomics major to help me. Exam Checklist You should be able to: 1. Calculate economic profits and accounting profits and explain the d

I have a Microeconomics Quiz Due today. I am looking for a MicroEconomics major to help me.

Exam Checklist

You should be able to:

1. Calculate economic profits and accounting profits and explain the difference between the two.

2. Define normal profit.

3. Explain the shape of the short run marginal product of labor curve, the short run total product of labor

curve, short run marginal cost curve, the short run average total cost curve, the short run average

variable cost curve and the long run average total cost curve.

4. Calculate the short run marginal product of labor, the short run total product of labor, short run

marginal cost, the short run average total cost, the short run average variable cost and the long run

average total cost.

5. Explain the characteristics/assumptions of a perfectly competitive market.

6. Explain why perfectly competitive firms are price takers.

7. Explain the demand curve for a perfectly competitive firm’s products.

8. Explain a perfectly competitive firm’s profit maximization decision

9. Calculate a perfectly competitive firm’s profit maximizing/loss minimizing level of output, and their

total profit at that point.

10. Graph a perfectly competitive firm or monopoly earning economic profits in the short run, labeling all

relevant curves and areas.

11. Graph a perfectly competitive firm or monopoly earning economic losses in the short run who chooses to

operate in the short run, labelling all relevant curves and areas.

12. Graph a perfectly competitive firm or monopoly earning economic losses in the short run who chooses to

shut down in the short run, labelling all relevant curves and areas.

13. Explain the firm’s shut down decision.

14. Do a numerical example which evaluates a firm’s shut down decision.

15. Graph and explain how a perfectly competitive firm and market move to a new equilibrium in both the

short and long run following an increase or decrease in demand, assuming a constant cost industry.

16. Compare the long run industry supply curve of a perfectly competitive market in a constant cost,

increasing cost and decreasing cost industries.

17. Explain how the perfectly competitive firm’s short run marginal cost curve above the average variable

cost curve is the firm’s short run supply curve.

18. Explain how a perfectly competitive firm can earn economic profits in the short run, but cannot earn

profits in the long run.

19. Define a monopoly and explain its characteristics.

20. Graph a monopoly that is earning economic profits in the short run, labeling all relevant curves and

areas.

21. Graph a monopoly that is earning economics losses in the short run who chooses to operate in the short

run, labeling all relevant curves and areas.

22. Graph a monopoly that is earning economic losses in the short run, who chooses to shut down in the

short run, labeling all relevant curves and areas.

23. Explain why a monopoly can earn economic profits in both the short and long run.

24. Compare perfect competition to a monopoly in terms of the 3 efficiency concept, allocative, productive

and dynamic.

25. Explain the conditions needed to price discriminate

26. Graph a perfectly price discriminating monopolist

27. Compare a perfectly price discrimination monopolist to a normal monopolist in terms of allocative

efficiency, and economic profits.

28. Use a prisoner’s dilemma model to address the question as to whether firms compete or collude in an

oligopoly setting.

29. Explain the different “real world” factors which make collusion more or less likely.

30. Evaluate whether firms in a oligopoly model achieve the efficiency results of perfect competition or

monopoly.

31. Graph a monopolistically competitive firm and evaluate its efficiency.

32. Explain how lack of competition, public goods, externalities, and poor information are considered

"market failures."

33. Graph markets in which there are either negative and positive externalities, demonstrating the

difference between market equilibrium and the allocatively efficiency outcome.

34. Explain under what conditions poor information likely leads to a market failure, and when it does not.