| Line 21: |
Line 21: |
| | *deadweight loss: the lost consumer surplus AND (in the case of a tax) the lost producer surplus | | *deadweight loss: the lost consumer surplus AND (in the case of a tax) the lost producer surplus |
| | *optimal market price: where supply meets demand, or (for a monopolist that has no supply curve) where MC intersects demand curve (MC=P) | | *optimal market price: where supply meets demand, or (for a monopolist that has no supply curve) where MC intersects demand curve (MC=P) |
| − | *comparing price and curves for ATC, AVC and MC, and realizing that maximum profits occur when MC=P; the firm shuts down in the long run when ATC>P; and the firm shuts down in the short run when AVC>P, but keeps operating in the short run when AVC<P but P<ATC | + | *comparing price and curves for ATC, AVC and MC, and realizing that maximum profits occur when MC=P; the firm shuts down in the long run when ATC>P; and the firm shuts down in the short run when AVC>P, but keeps operating in the short run when AVC<P but P<ATC (remember: "variable cost" is a short run issue; "total cost" is a long run issue) |
| | | | |
| − | <add: Lorenz curve - an obscure topic on CLEP worth one question>
| + | == Review: Government Policy == |
| | | | |
| − | <must include: production possibilities (nearly 5% of CLEP), comparative advantage (3% of CLEP)>
| + | As mentioned in a prior election, 10% of the CLEP iexam is on government policy. With an ear tuned for political bias, student can rack up many correct answers here. But if the student's ear is slightly off-key, he can lose far more points here than he should. |
| | | | |
| − | Review:
| + | * market distribution of income (Lorenz curve) |
| − | Imperfect competition
| + | * market failure and imbalances in information |
| − | • Monopoly
| |
| − | • Oligopoly and monopolistic
| |
| − | competition
| |
| − | • Efficiency, antitrust,
| |
| − | and regulation | |
| | | | |
| − | include concepts not covered last week in list of remaining concepts.
| + | == Production Possibilities == |
| | | | |
| − | discuss economics of bus project?
| + | Nearly 5% of CLEP. |
| | + | |
| | + | == Comparative Advantage == |
| | + | |
| | + | Nearly 3% of CLEP. |
| | + | |
| | + | Contrast with "competitive advantage." |
| | + | |
| | + | == Review: Types of Competition == |
| | + | |
| | + | *Perfect Competition |
| | + | *Imperfect competition |
| | + | *Monopoly |
| | + | *Oligopoly and monopolistic competition |
| | + | |
| | + | == economics of bus trip? == |
| | | | |
| | ==Review: Inputs== | | ==Review: Inputs== |