Microeconomics ECON 2302 Summer 1, 2010 Marilyn Spencer, Ph.D. Professor of Economics Final Exam Review Chapters 1-6 & 10-14

5th Bonus Extra Credit 4 points possible View the film, “American Gangster,” and write a brief report that explains: The structure of the market that Frank Lucas goes into (whether perfectly competitive, or ….) At least 3 major innovations he makes in his firm that allow him to compete so successfully Email your report to me before noon, July 2. 4 points possible

Final Exam Test format (same as all other exams): Short Answer + 15 multiple choice questions Resources sheet to indicate any additional resources used Questions include definitions, theory & applications. – Expect graphs and numbers. 60-minute time period Scantron answer sheet provided 50% of exam over Chapters 13 & 14

Chapter 1 EXAM QUESTION TOPIC Scarcity Chapter 2 EXAM QUESTION TOPICS Production possibilities frontier Opportunity cost Comparative advantage

Chapter 3 EXAM QUESTION TOPICS Variables that affect demand & supply Change in demand or supply that change the equilibrium Chapter 4 EXAM QUESTION TOPICS Consumer & producer surplus

Chapter 5 EXAM QUESTION TOPICS Causes and effects of externalities & market failures Public goods/free rider problem

Chapter 6 EXAM QUESTION TOPICS Elasticities of demand Price elasticity of demand Income elasticity of demand Cross price elasticity of demand Determinants of price elasticity of demand Elasticity of demand and total revenue

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

Profit maximization/loss minimization Barriers to entry Chapters 11, 12 & 14 EXAM QUESTION TOPICS Perfectly competitive v. monopolistically competitive v. oligopoly v. monopoly market assumptions/conditions/outcomes Profit maximization/loss minimization Barriers to entry Government antitrust

Chapter 13 EXAM QUESTION TOPICS Barriers to entry Game theory to explain oligopoly behavior Collusion Cartel

Any questions on these topics? Questions about anything else?