Overview
Do not write too much on the exam. Go straight to the point in your essays.
1) Be able to explain a "Production function". Be able to graph and explain the stages of production
2) Identify and explain the Assumptions on "Perfect Competition". Be able to graph and explain how a perfectly competitive firm maximizes profit.
3) Be able to list and explain the sources of "Monopoly". Also, be able to graph and explain how monopoly maximizes profit.
4) Be able to contrast "Monopolistic Competition" with "Perfect Competition". Include narrative on how profit is maximized in the Monopolistic Competitive firm.
5) Be able to explain in graph and in statement how the "marginal cost" (MC) influences the "average cost" (AC) Also, be able to provide graph and narrative on the point of the decision to shut down business in the short run
Must include graphs