Intro to Microeconomics Study Guide Fall 2024

INTRO TO MICROECONOMICS ----------------------- **FALL 2024** **Alessandro Giannozzi** **Study Guide** **Relevant chapters: 9, 10, 11, 12, 13, 14, 15, 16, 18, 22** **For the final, students are expected to know the following concepts:** - **Assumptions of "perfect competition", meaning of "p...

INTRO TO MICROECONOMICS ----------------------- **FALL 2024** **Alessandro Giannozzi** **Study Guide** **Relevant chapters: 9, 10, 11, 12, 13, 14, 15, 16, 18, 22** **For the final, students are expected to know the following concepts:** - **Assumptions of "perfect competition", meaning of "price taker",** - **Profit Maximization Rule under perfect competition** - **Industry Adjustment to Increase in Demand (in the long run)** - **Assumptions and barriers to entry of a monopoly** - **Meaning of "price searcher"** - **Profit maximization rule under monopoly** - **Differences between perfect competition and monopoly** - **Assumptions of "monopolistic competition"** - **Profit Maximization Rule under monopolistic competition** - **Meaning of Oligopoly and cartel theory** - **Problems of a cartel** - **Meaning of "contestable markets"** - **Regulating the Natural Monopoly: differences between price regulation, profit regulation and output regulation** - **Concepts of derived demand** - **Computation of the marginal revenue product (MRP) of a factor** - **Computation of Value marginal product (VMP) e Marginal factor costs (MFC)** - **Optimal units of a factor to be employed in the company** - **Factors that causes a shift in the labor demand curve** - **Calculation of elasticity of demand for labor** - **Factors that causes a shift in the labor supply curve** - **Factors that affect the wage rates** - **Labor union objectives, wage-employment trade-off and relationship with the elasticity of labor demand.** - **Gini coefficient and Lorenz curve to measure income inequality** - **Factors Contributing to Income Inequality** - **Difference between nominal interest rate and real interest rate** - **Calculation of present values** - **Definition of Market failures, positive and negative externalities** - **Impact of externalities on market output and prices** - **Marginal social costs/benefits, Socially optimal output** - **Types of environmental policies, benefits and disadvantages** - **Concept of asymmetric information and impact on the market** - **Types of trade restrictions and implications for consumer and producers surplus** - **Calculation of comparative advantage** - **Arguments for trade restrictions**