1. Most Important Micro Graphs

2. Non-graph Concepts Comparative Advantage problems –Calculating opportunity costs –Calculating terms of trade Elasticity –Calculating price elasticity of demand –Calculating arc elasticity –Elastic, inelastic, unit elastic –Perfect elasticity, perfect inelasticity –Cross-elasticity In product market, MC = MR In factor market, MRP = MFC

3. Non-graph Concepts Perfect Competition –Define, and required conditions (price takers, etc.) –Finding profit or loss –Economic (Supernormal) vs. Accounting (Normal) profits –Shutdown price –Breakeven price Monopolies and Monopsonies –Define, required conditions Imperfect Competition –Monopolistic competition –Oligopoly

4. Non-graph Concepts Unions Business regulation Trade restrictions Income distribution and inequalities

5. Demand “Demand” v. “Quantity Demanded” Substitutes Complements Other Factors Price Elasticity of Demand Price Arc Elasticity of Demand Quantity Price D

6. Supply “Supply” v. “Quantity Supplied” What “supply curve means” Factor costs Supplier Substitutes # of Suppliers Price elasticity of supply Price arc elasticity of supply Quantity Price S

7. D & S Together How to graph: –Shortages –Surpluses –Price ceilings –Price floors ****Difference between “Demand” and “Quantity Demanded” ****If 2 curves shift, only one variable can be known

8. Elasticity and Ranges of Curve Quantity Price D Elastic Unit Elastic Inelastic

9. Failure to produce at equilibrium

10. Consumer and Supplier Surpluses

11. Maximizing Utility

12. Indifference Curves

13. Demand: Substitution and Income Effect

14. Total Product Curve

15. Total Costs, Total Fixed, Total Variable

16. Marginal Cost

17. All Cost Curves Together Know how the curves relate!

18. Long Run Cost Curve

19. Short-run Perfect Competition

20. Long-run Perfect Competition

21. Monopoly

22. Long-run Monopolistic Competition

23. Game Theory Matrix

24. Price Descrimination

25. Marginal Revenue Product

26. MRP = MFC

27. Supply of Labor

28. Monopsony

29. Tax Incidence

30. Market Failure: Social Costs

31. Market Failure: Social Benefits

32. Domestic Effect of Exports and Imports