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Microeconomics Study Notes: Production, Market Structures, Externalities, and Factor Markets

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Revenue, Cost, and Profit

The Production Function and Diminishing Returns

Marginal Cost

The Relationship Between Average Cost and Marginal Cost

Graphing Costs

Average Total Cost: Short Run and Long Run

Introduction to the Four Market Models

Characteristics of Perfect Competition

Revenue in Perfect Competition

Perfect Competition Profit on the Graph

Short Run Shutdown Decision

Long Run Entry and Exit Decision

Individual Supply Curve in the Short Run and Long Run

Market Supply Curve in the Short Run and Long Run

Long Run Equilibrium

Perfect Competition and Efficiency

Four Market Model Summary: Perfect Competition

Characteristics of Monopoly

Monopoly Revenue

Monopoly Profit on the Graph

Monopoly Efficiency and Deadweight Loss

Price Discrimination

Antitrust Laws and Government Regulation of Monopolies

Four Market Model Summary: Monopoly

Characteristics of Monopolistic Competition

Revenue in Monopolistic Competition

Monopolistic Competition Profit on the Graph

Monopolistic Competition in the Long Run

Efficiency in Monopolistic Competition

Advertising

Four Market Model Summary: Monopolistic Competition

Characteristics of Oligopoly

One-Time Games and the Prisoner's Dilemma

Game Theory and Oligopoly Profit

Repeated Games

Four Market Model Summary: Oligopoly

Antitrust Laws and Government Regulation of Monopolies