1. Microeconomics ECON 2302 Spring 2011
Marilyn Spencer, Ph.D.
Professor of Economics
Review of Chapters 12, 13 & 14

2. Test format (same as exams 1 & 2):
3rd Exam, April 29
Test format (same as exams 1 & 2):
20 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 numbers.
Scantron answer sheet provided

3. Chapter 12 EXAM QUESTION TOPICS
Monopolistic competition market assumptions
Elasticity of demand for a monopolistically competitive firm
Monopolistically competitive profit maximization/ loss minimization in the Short Run
Causes of long run entry and exit
Implications of long run entry and exit
Pros and cons of monopolistic competition v. perfect competition

4. Chapter 13 EXAM QUESTION TOPICS
Barriers to entry
Game theory to explain oligopoly behavior
Nash equilibrium
Dominant strategy
Prisoner’s dilemma
Cooperative strategies
Collusion
Cartel
Price leadership
Five Forces Model

5. Chapter 14 EXAM QUESTION TOPICS
Barriers to entry that lead to and foster monopoly
Why government provides certain barriers to entry
Monopoly profit maximizing/loss minimizing strategy
Effect of a monopoly on economic efficiency
Antitrust laws

6. Any questions on these topics?