MANAGERIAL ECONOMICS

Study Guide for Test #2

1. Characteristics of perfect competition

2.  Short-run equilibrium in perfect competition - graph

3.  Long-run equilibrium in perfect competition - graph and explanation

4.  Impact of trade - graph

5.  Foreign exchange market - graph

6.  Impact of appreciation and depreciation

7.  Characteristics of monopoly

8.  Sources of monopoly

9.  Short-run (and long-run) equilibrium in monopoly - graph

10.  Comparison of monopoly and perfect competition - graph

11.  Characteristics of monopolistic competition

12.  Methods of product differentiation

13.  Long-run equilibrium in monopolistic competition - graph and explanation

14.  Characteristics of oligopoly

15.  Classification of oligopoly

16.  Economies of scale and market structure

17.  Concentration ratios

18.  Herfindahl Index

19.  Cournot model

20.  Kinked demand curve model - graph, problems

21.  Cartel arrangements - types, graph

22.  Price leadership model - graph

23.  Factors leading to less rivalry (competition)

24.  Benefits and problems with oligopoly

25.  Sales maximization model - graph, calculation

26.  Architecture of the ideal firm

27.  Miscellaneous - global oligopolists, the creative company, the virtual corporation, relationship enterprises

28.  Dominant strategy in game theory

29.  Nash equilibrium

30.  Prisoners' dilemma

31.  Repeated games and tit-for-tat strategy

32.  Threats, commitments, and credibility

33.  Entry deterrence

34.  International competitiveness

35.  Sequential games and decision trees

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Recommended Problems

Chapter 10 - 1, 2a, 3

Chapter 11 - 1, 2, 8, 10, 13, 14

Answers to recommended problems