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What is a firm's fundamental goal?
What do economists mean by the phrase ‘normal profit’?
How is the time period referred to as the short run defined?
What do economists mean by the phrase ‘increasing marginal returns’?
How are average product and marginal product related mathematically?
How is the cost of capital treated in the short run?
What are the reasons for the U-shape of the average total cost curve?
What is the relationship between the MC, AVC, and ATC curves?
What do economists call the situation where a firm's long-run average total cost falls as its output increases
What effects cause the long-run average cost curve to be U-shaped?
What are the characteristics of a perfectly competitive industry
What makes up a perfectly competitive firm's supply curve (above the shut-down point)?
What decision does a perfectly competitive firm have to make to maximize its profit, in the short run?
What happens if a perfectly competitive firm raises the price of its product above the equilibrium price? -
In the short run, what level of profit can a perfectly competitive firm earn? -
What level of profit does a perfectly competitive firm earn if price is less than its ATC?
(graph) How is the profitability of a perfectly competitive firm shown graphically?
What happens in the long run when firms in a perfectly competitive market are earning an economic profit? -
In the long run, how profitable will a firm in a perfectly competitive market be?
How will a permanent decrease in demand affect a perfectly competitive market?
What are the characteristics of a monopolistic market?
What are some examples of legal barriers in markets?
How does a natural monopoly arise?
What is a single-price monopoly and why doesn’t it price discriminate?
What does a single-price monopoly do to maximize its profit?
graph) How is the profit-maximizing output determined graphically for a single-price monopoly?
How does a monopoly differ from a perfectly competitive market with the same costs? -
(graph) How would consumer surplus in a monopolistic market be shown graphically?
What fact about the willingness to pay of buyers makes price discrimination possible?
What happens to consumer surplus if a monopoly is able to perfectly price discriminate?
What are the characteristics of monopolistic competition?
What happens to firms in monopolistic competition, in the long run?
How is the ability to collude related to the number of firms in an industry?
Why can firms in monopolistic competition set the price for their products?
How is the marginal revenue curve facing a monopolistically competitive firm related to its demand curve? -
How do economists define a firm's efficient scale of production?
What rule does a firm in monopolistic competition follow to maximize profit?
graph) How is the profit-maximizing price for a monopolistically competitive firm determined graphically
Why do firms in monopolistic competition engage in innovation and product development?
How do economists evaluate the overall efficiency of monopolistically competitive firms?
What is the unique characteristic of oligopoly markets?
What do economists call a market with only two firms?
What tools do economists use to identify oligopoly markets?
What level of profit can firms in an oligopoly earn if they successfully collude and do not cheat on a cartel agreement? -
(graph) How can the range of outputs of an oligopoly be determined graphically?
What tool do economists use to analyze the mutual interdependence of oligopolies?
Why are collusive agreements to form a cartel difficult to maintain?
Why is the prisoners' dilemma similar to the problem faced by firms in an oligopoly in the United States?
What is the focus of U.S. antitrust legislation?
What do economists call setting a price so low that competitors are driven out of a market and then boosting the price? –
