1. INTRODUCTION TO THE ECONOMICS OF ANTITRUST

2. ASSUMPTIONS OF CLASSICAL ECONOMICS PEOPLE ACT RATIONALLY TO MAXIMIZE THEIR OWN INTERESTS

3. ASSUMPTIONS OF CLASSICAL ECONOMICS PEOPLE ACT RATIONALLY TO MAXIMIZE THEIR OWN INTERESTS RESOURCES MOVE TO MOST VALUABLE USE IF VOLUNTARY EXCHANGE PERMITTED

4. VALUE MEASURED BY AGGREGATE CONSUMER WILLINGNESS TO PAY FOR THINGS

5. EFFICIENCY EXPLOITING ECONOMIC RESOURCES TO MAXIMIZE VALUE

6. PROBLEMS WITH ASSUMPTIONS DEFINITION OF VALUE PEOPLE OFTEN IRRATIONAL

7. PROBLEMS WITH ASSUMPTIONS DEFINITION OF VALUE –CONSUMER CULTURE –DEPENDS ON INCOME DISTRIBUTION –MORE $ = MORE VOTES

8. PROBLEMS WITH ASSUMPTIONS PEOPLE OFTEN IRRATIONAL –OFTEN APPEAR TO ACT AGAINST SELF-INTEREST –OFTEN PERCEIVE SELVES ACTING AGAINST SELF- INTEREST

9. DEMAND CURVE : GENERALLY BUY MORE OF GOOD THE LESS IT COSTS

10. DEMAND CURVE: GENERALLY BUY MORE OF GOOD THE LESS IT COSTS SUBSTITUTION EFFECT INCOME EFFECT

11. DEMAND CURVE: GENERALLY BUY MORE OF GOOD THE LESS IT COSTS SUBSTITUTION EFFECT: AS GOOD BECOMES CHEAPER, BUY IT INSTEAD OF ALTERNATIVES INCOME EFFECT

12. DEMAND CURVE: GENERALLY BUY MORE OF GOOD THE LESS IT COSTS SUBSTITUTION EFFECT INCOME EFFECT: AS GOOD BECOMES CHEAPER, PURCHASING POWER INCREASES, SO BUY MORE

13. DEMAND

14. DEMAND CURVE: GENERALLY BY MORE OF GOOD THE LESS IT COSTS EXCEPTIONS : INFERIOR GOODS LUXURY GOODS

15. DEMAND CURVE: GENERALLY BY MORE OF GOOD THE LESS IT COSTS EXCEPTIONS: INFERIOR GOODS: GOODS YOU BUY MORE OF, THE LESS $ YOU HAVE LUXURY GOODS

16. DEMAND CURVE: GENERALLY BY MORE OF GOOD THE LESS IT COSTS EXCEPTIONS: INFERIOR GOODS LUXURY GOODS: GOODS YOU BUY BECAUSE OF THE HIGH PRICE

17. FACTORS AFFECTING DEMAND PERSONAL TASTE INCOME PRICE OF COMPLEMENTARY GOODS PRICE OF SUBSTITUTES

18. FACTORS AFFECTING DEMAND PERSONAL TASTE INCOME PRICE OF COMPLEMENTARY GOODS PRICE OF SUBSTITUTES

19. FACTORS AFFECTING DEMAND PERSONAL TASTE INCOME PRICE OF COMPLEMENTARY GOODS PRICE OF SUBSTITUTES

20. FACTORS AFFECTING DEMAND PERSONAL TASTE INCOME PRICE OF COMPLEMENTARY GOODS PRICE OF SUBSTITUTES

21. DEMAND

24. TYPES OF PRODUCER COSTS FIXED v.VARIABLE COSTS TOTAL v. AVERAGE COSTS MARGINAL COST

25. FIXED v. VARIABLE COSTS FIXED COSTS: DO NOT VARY IN SHORT RUN VARIABLE COSTS

26. FIXED v. VARIABLE COSTS FIXED COSTS: DO NOT VARY IN SHORT RUN VARIABLE COSTS: VARY WITH LEVEL OF PRODUCTION

27. TOTAL v. AVERAGE COST TOTAL COST: ALL COSTS ASSOCIATED WITH PRODUCT LINE AVERAGE COST

28. TOTAL v. AVERAGE COST TOTAL COST: ALL COSTS ASSOCIATED WITH PRODUCT LINE AVERAGE COST: MEAN COST PER ITEM PRODUCED

29. TOTAL v. AVERAGE COST TOTAL COST: ALL COSTS ASSOCIATED WITH PRODUCT LINE AVERAGE COST: MEAN COST PER ITEM PRODUCED –AVERAGE TOTAL COST –AVERAGE VARIABLE COST

30. MARGINAL COST = ADDITIONAL COST OF PRODUCING ONE MORE UNIT

31. ALL COSTS INCLUDE NORMAL PROFIT

32. SUPPLY CURVE = MARGINAL COST CURVE FOR INDUSTRY AS A WHOLE

33. SUPPLY & DEMAND

34. FACTORS AFFECTING SUPPLY CURVE TECHNOLOGICAL CHANGE

35. FACTORS AFFECTING SUPPLY CURVE TECHNOLOGICAL CHANGE INPUT PRICES

36. SUPPLY & DEMAND

37. PRODUCERS GOAL MARGINAL REVENUE = MARGINAL COST

38. PRODUCERS GOAL IN COMPETITIVE MARKET MARGINAL REVENUE = PRICE = MARGINAL COST

39. SUPPLY & DEMAND

40. OPTIMUM CONDITIONS FOR COMPETITIVE EQUILIBRIUM FUNGIBLE PRODUCT SUPPLIERS CANT AFFECT EACH OTHERS PRICING/OUTPUT MOBILITY/EQUALITY OF RESOURCE AVAILABILITY GOOD INFORMATION/LOW TRANSACTION COSTS

41. OPTIMUM CONDITIONS FOR COMPETITIVE EQUILIBRIUM FUNGIBLE PRODUCT SUPPLIERS CANT AFFECT EACH OTHERS PRICING/OUTPUT MOBILITY/EQUALITY OF RESOURCE AVAILABILITY GOOD INFORMATION/LOW TRANSACTION COSTS

42. OPTIMUM CONDITIONS FOR COMPETITIVE EQUILIBRIUM FUNGIBLE PRODUCT SUPPLIERS CANT AFFECT EACH OTHERS PRICING/OUTPUT MOBILITY/EQUALITY OF RESOURCE AVAILABILITY GOOD INFORMATION/LOW TRANSACTION COSTS

43. OPTIMUM CONDITIONS FOR COMPETITIVE EQUILIBRIUM FUNGIBLE PRODUCT SUPPLIERS CANT AFFECT EACH OTHERS PRICING/OUTPUT MOBILITY/EQUALITY OF RESOURCE AVAILABILITY GOOD INFORMATION/LOW TRANSACTION COSTS

44. OPTIMUM CONDITIONS FOR COMPETITIVE EQUILIBRIUM FUNGIBLE PRODUCT SUPPLIERS CANT AFFECT EACH OTHERS PRICING/OUTPUT MOBILITY/EQUALITY OF RESOURCE AVAILABILITY GOOD INFORMATION/LOW TRANSACTION COSTS

45. SUPPLY AND DEMAND

46. SUPPLY & DEMAND

50. ELASTICITY (SENSITIVITY TO PRICE CHANGES) % CHANGE IN OUTPUT NECESSITATED BY 1% CHANGE IN PRICE

51. ELASTICITY > 1 DEMAND IS ELASTIC CONSUMERS RESPONSIVE TO PRICE CHANGES GOOD SUBSTITUTES EXIST

52. ELASTICITY < 1 DEMAND IS INELASTIC CONSUMERS UNRESPONSIVE TO PRICE CHANGES FEW GOOD SUBSTITUTES

53. TOTAL REVENUE/DEMAND

59. MONOPOLY: PROBLEMS HIGH PRICES LOWER OUTPUT WEALTH TRANSFER (?) DEADWEIGHT LOSS

60. BARRIERS TO ENTRY LIMITED ACCESS TO KEY RESOURCES GOVERNMENT REGULATION HIGH FIXED COSTS BRAND LOYALTY

61. MONOPOLY: PROBLEMS HIGH PRICES LOWER OUTPUT WEALTH TRANSFER (?) DEADWEIGHT LOSS PREDATORY CONDUCT RENT-SEEKING BEHAVIOR

63. MARKET DEFINITION:TIPS FOCUS: DEFENDANTS PRODUCT

64. MARKET DEFINITION:TIPS FOCUS: DEFENDANTS PRODUCT ADD OTHERS NECESSARY TO GET MARKET POWER

65. MARKET DEFINITION:TIPS FOCUS: DEFENDANTS PRODUCT ADD OTHERS NECESSARY TO GET MARKET POWER PRODUCT & GEOGRAPHIC MARKETS

66. MARKET DEFINITION:TIPS FOCUS: DEFENDANTS PRODUCT ADD OTHERS NECESSARY TO GET MARKET POWER PRODUCT & GEOGRAPHIC MARKETS TRY SEVERAL ALTERNATIVES

67. MARKET DEFINITION:TIPS FOCUS: DEFENDANTS PRODUCT ADD OTHERS NECESSARY TO GET MARKET POWER PRODUCT & GEOGRAPHIC MARKETS TRY SEVERAL ALTERNATIVES ART NOT SCIENCE

68. MARKET DEFINITION: FACTORS