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

2. Who should consider taking the Final Exam? 1.If you missed any of the 3 exams during the term, you MUST take the final exam. 2.All others: a.You need to see how very close your total points take you to the grade you desire. b.Then it’s a good idea to look at the spread between your lowest exam score any your highest exam score. c.If the spread exceeds your need for additional points, you’re more likely to meet your goal by taking the final. But, if not, you might do very well just by studying very hard.

3. Planning to Take the Final? You need to let me know! YOU MUST EMAIL ME by 12 noon, Monday, May 9, Exam YOU MUST EMAIL ME by 12 noon, Monday, May 9, to tell me you plan to take the Final Exam.

4. Final Exam Week Office Hours: 4 4-5:30 p.m., Wednesday, May 4 4 12:30-2 p.m., May 5 4 3-5 p.m., Tuesday, May 10 4 3-5 p.m., Wednesday, May 11 4 And by appointment

5. Optional Optional Final Exam 4 Test format (same as all other exams): Ü20 multiple choice questions ÜResources sheet to indicate any additional resources used – same resource choices as for previous exams ÜQuestions include definitions, theory & applications. – Expect graphs and numbers. Ü60-minute time period ÜScantron answer sheet provided

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

7. 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  Price floors & ceilings  Effects of a tax or government subsidy

8. Chapter 5 EXAM QUESTION TOPICS  Causes and effects of externalities & market failures  Common resource problem  Public goods/free rider problem

9. 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  Taxes and elasticity of demand

10. 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/efficient scale

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

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

13. Any questions on these topics? Questions about anything else?