Study Guide Question 1. There will be two problems on the Prisoners' Dilemma model. You must be able to determine the do
Posted: Mon May 02, 2022 8:10 am
Study Guide Question
1. There will be two problems on the Prisoners' Dilemma model.
You must be able to determine the dominant strategy for each player
in the game theoretic structure.
2. There will be be a problem on Fixed cost and variable cost.
Given cost data you must be able to compute the Average variable
cost, ATC.
3. For a purely competitive firm, given data on Total product Q,
ATC, AVC and MC and the market price, you must be able to find the
firm's optimal output level and compute its profits or losses.
4. Given the MC, AVC and ATC curve you must be able to identify
and to define the MC or Marginal cost curve.
5. Given a graphical depiction of MC, ATC, and various MR and
Prices, you must be able to compute profits, and Break-even price
and output levels.
6. given a natural monopoly demand D, MR, MC, ATC curves, you
must be able to determine the social optimum price, the fair return
price. You must be able to analyze the how much money the regulator
must subsidize the firm by in order to keep it afloat.
7. Given Price and MC, you must be able to compute the Lerner
Index and explain what the Lerner Index means in terms of
competitiveness of the industry.
8. There will be questions on the three oligopoly models that
was discusses in class: Kinked-demand Model, Price-Leadership Model
and Cartel Model.
9. The theories of the Prisoners' dilemma and the strategic
choice given the payoff matrix by each player. You most also
consider situations whereby in a duopoly two firms are making
decision on price. What should be the price decision by any one of
the firm and why. Here the the theory of the dominant strategy must
be explained and analyzed.
10. There will be questions on Price Discrimination practices,
and you must be able to remember and discuss the examples of price
discrimination that we discussed in class.
11. Be able to identify the short run supply curve of the
competitive firm, given the MC, ATC, AVC and D curves.
12. Be able to explicate and analysis the various methods
oligopoly firms and monopolistically competitive firm differentiate
their products and why product differentiations are important.
13. Economies of scale, the Minimum Efficient Scale and Constant
Return to scale and Diseconomies of Scale.
14. Factors that might give rise to economies of scale and
factors that might give rise to Diseconomies ff Scale, as explained
in class and in the text.
15. There might be one or two questions on the video about the
great American economist and empiricist thinker, Professor Thomas
Sowell.
16. The various reasons why the government regulate
industries.
17. Be familiar with the Sherman Act, the Clayton Act, the
Cellar-Kefauver Act, the Federal Trade Commission Act and the
Wheeler-Lea Act.
1. There will be two problems on the Prisoners' Dilemma model.
You must be able to determine the dominant strategy for each player
in the game theoretic structure.
2. There will be be a problem on Fixed cost and variable cost.
Given cost data you must be able to compute the Average variable
cost, ATC.
3. For a purely competitive firm, given data on Total product Q,
ATC, AVC and MC and the market price, you must be able to find the
firm's optimal output level and compute its profits or losses.
4. Given the MC, AVC and ATC curve you must be able to identify
and to define the MC or Marginal cost curve.
5. Given a graphical depiction of MC, ATC, and various MR and
Prices, you must be able to compute profits, and Break-even price
and output levels.
6. given a natural monopoly demand D, MR, MC, ATC curves, you
must be able to determine the social optimum price, the fair return
price. You must be able to analyze the how much money the regulator
must subsidize the firm by in order to keep it afloat.
7. Given Price and MC, you must be able to compute the Lerner
Index and explain what the Lerner Index means in terms of
competitiveness of the industry.
8. There will be questions on the three oligopoly models that
was discusses in class: Kinked-demand Model, Price-Leadership Model
and Cartel Model.
9. The theories of the Prisoners' dilemma and the strategic
choice given the payoff matrix by each player. You most also
consider situations whereby in a duopoly two firms are making
decision on price. What should be the price decision by any one of
the firm and why. Here the the theory of the dominant strategy must
be explained and analyzed.
10. There will be questions on Price Discrimination practices,
and you must be able to remember and discuss the examples of price
discrimination that we discussed in class.
11. Be able to identify the short run supply curve of the
competitive firm, given the MC, ATC, AVC and D curves.
12. Be able to explicate and analysis the various methods
oligopoly firms and monopolistically competitive firm differentiate
their products and why product differentiations are important.
13. Economies of scale, the Minimum Efficient Scale and Constant
Return to scale and Diseconomies of Scale.
14. Factors that might give rise to economies of scale and
factors that might give rise to Diseconomies ff Scale, as explained
in class and in the text.
15. There might be one or two questions on the video about the
great American economist and empiricist thinker, Professor Thomas
Sowell.
16. The various reasons why the government regulate
industries.
17. Be familiar with the Sherman Act, the Clayton Act, the
Cellar-Kefauver Act, the Federal Trade Commission Act and the
Wheeler-Lea Act.