Menu 07 Oct 20 - kjnkjn PDF

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TODAY’S MENU: Wednesday 07 October 2020 I. BUSINESS A. Practice (Thinking) Problems 1. “Questions and Exercises” section at end of textbook chapters a. Answers in “Practice Problem Answers” document on Moodle 2. Chapter 13: 1, 2, 8, 15-17 B. Second Exam: One week from Monday (Monday, 19 October) II. SUBSTANCE A. Perfect competition 1. Firm behavior in the short run: How much to produce? a. Case 1: P > ATC b. Case 2: P = ATC c. Case 3: ATC > P ≥ AVC i. Equilibrium quantity ii. Profit d. Case 4: P < AVC i. Equilibrium quantity ii. Profit e. Conclusions 2. Firm behavior: short run to long run a. Case 1: P > ATC i. Entry/Exit ii. Change in output/profit b. Case 2: P = ATC i. Entry/Exit ii. Change in output/profit c. Case 3: ATC > P ≥ AVC i. Entry/Exit ii. Change in output/profit d. Conclusions III. NEXT TIME A. Begin Chapter 14: “Monopoly and Monopolistic Competition” B. To prepare, please read Chapter 14, pp. 293-308....