Microeconomics ECON 2302 Summer I, 2011 Marilyn Spencer, Ph.D. Professor of Economics Final Exam Review Chapters 1-6 & 10-14

Final Exam: Thursday, June 30 Test format (same as Exam 2): 40 regular multiple choice questions Resources sheet to indicate any additional resources used – same resource choices as for 1st exam Questions include definitions, theory & applications. – Expect graphs and tables of numbers. Scantron answer sheet provided More than 50% of exam focused on Chapters 12-14

Chapter 1 EXAM QUESTION TOPIC Positive v. normative analysis Chapter 2 EXAM QUESTION TOPICS Opportunity cost

Chapter 3 EXAM QUESTION TOPICS Variables that affect demand & supply Change in demand or supply that change the equilibrium Chapter 4 EXAM QUESTION TOPICS Effects of price controls Consumer & producer surplus, by looking at deadweight loss

Chapter 5 EXAM QUESTION TOPICS Externalities & market failures Public goods Common resources Chapter 6 EXAM QUESTION TOPICS Price, income & cross-price elasticities of demand Determinants of price elasticity of demand Demand elasticity & total revenue Elasticity of supply

Chapter 10 EXAM QUESTION TOPICS only in the context of chapters 11-14 Family of SHORT RUN cost curves: ATC, AFC, AVC, MC LONG RUN: Returns to scale

Four assumptions/conditions Profit maximization/loss minimization Chapters 11, 12 & 14 EXAM QUESTIONS Perfectly competitive v. monopolistically competitive v. monopoly markets: Four assumptions/conditions Profit maximization/loss minimization Barriers to entry Effects of long run entry and exit Efficiency Government antitrust

Chapter 13 EXAM QUESTION TOPICS Barriers to entry Game theory to explain oligopoly behavior Non-cooperative games Dominant strategy/Nash equilibrium Nash equilibrium Prisoners’ dilemma Cooperative games Collusion Cartel

Any questions on these topics? Questions about anything else?