What are determinants of the price elasticity of demand

 What are determinants of the price elasticity of demand

Topics:

1. What are determinants of the price elasticity of demand? Explain.

2. Explain the consumer and the producer surplus. Under which condition the combined area of both surpluses can be maximized?

3. What is an Indifference Curve? What are characteristics of indifference curves? Explain.

4. Distinguish the short run form the long run. Generally, what causes cost of production to vary with output in the short run? What generally causes costs of production to vary in the long run? Explain.

5. Distinguish economies and diseconomies of scale. How can the extent to which economies and diseconomies of scale explain the size and number of real world firm in an industry?

6. What are the characteristics of the perfectly competitive market? Explain.

7. What are the profit maximizing (loss minimizing) levels of price and quantity for the perfectly competitive firm both in the short-run and in the long-run? Explain.

8. Explain the characteristics of the monopoly market.

9. Explain how a monopolist can increase profits by price discriminating. What are the conditions necessary for price discrimination?

10. What is the most important characteristic of monopolistic competition? How do firms behave differently from perfect competitors?

11. What are the profit maximizing (loss minimizing) levels of price and quantity for the monopolistic competitive firm both in the short-run and in the long-run? Explain.

12. How does the short-run equilibrium of a monopolistic competitor differ from a monopolist? How does it differ from a perfect competitor? Explain.

13. What are the characteristics of an oligopoly? Explain.

14. Compare and contrast the four market models in terms of the profit-maximizing output level for each, the shut-down rule for each, the probability of long-run economic profits being earned, and their social desirability.

15. Explain the Antitrust Policy in the United States.