NOTE; YOU CAN BRING A 4X6 INDEX CARD WITH WRITING ONE SIDE
Economics 331: Intermediate Microeconomics: basic review guide
I. Analysis of Markets: Demand, Supply, Equilibrium
demand and supply functions: shifts, movement along
equilibrium: comparative equilibrium, price controls
ELASTICITIES, computation and analysis
Price elasticity of demand
Revenue, marginal revenue, price and
elasticity
Income and cross elasticity of demand
II. The Theory of the Consumer
utility functions, indifference curves, Marginal Rate of Substitution
budget lines, price ratios, income changes
Maximizing utility subject to the budget line:
graphs...
Income, substitution effects
normal, inferior, Giffen goods
price, income expansion paths
deriving demand and Engel curves
III. Production and Cost Theory
the production function: Q = f(L,K)
Properties, analysis....
Short run: TP, MP, AP
long run: isoquants, mrts ....
Short run costs:
FC, VC, TC, MC shapes and respective per unit
costs
Long run: producing at lowest cost: isocost,isoquant
expansion path: economies of scale ....
IV. Market structure: Perfect Competition
basic assumptions
short run behavior
the firm and the market
long run adjustments
applications of the model
welfare analysis: producer and consumer surplus
V. Market structure: Monopoly
profit maximization with market power
marginal revenue, elasticity, and demand
monopoly pricing
price discrimination
perfect price discrimination
3rd degree price discrimination
welfare analysis: consumer, producer surplus;
deadweight loss
VI. Market structure: Oligopoly
aysmmetric pricing behavior
Cournot and Bertrand models
comparisons of output and price with other market structures
VII. General Equilibrium Analysis
pure exchange models: the Edgeworth Box diagram
conditions for a "general equilibrium"
Pareto conditions and movements