Test#3 Study Guide

The following are a list of topics to study for the test:

• The long run industry supply curve
• The elasticity of the long run industry supply curve
• Profits in the long-run in a perfectly competitive industry with free entry and exit
• The location of the firm's marginal revenue curve under monopoly
• Profit maximization under monopoly
• The elasticity of the demand curve for a monopolist
• Total surplus under monopoly
• The two major public policies toward natural monopolies
• Price discrimination definition
• How a monopoly can engage in price discrimination
• How a monopoly can achieve perfect price discrimination
• Collusion vs. cartel
• Noncooperative behavior
• Price war
• Game theory definition
• Dominant strategy vs. a nash equilibrium
• Antitrust policy definition
• Product differentiation vs. price leadership
• Collusion in monopolistic competition in the short run
• The demand curve under monopolistic competition in the long run