ECON 1201 Study Guide - Final Guide: Public Good, Information Asymmetry, Profit Maximization

• School: UConn
• Department: Economics
• Course: ECON 1201
• Professor: All

Document Summary

Chapter 12 and 13: environmental protection, negative and positive externalities. Monopolistic competition: the competitive model in a more realistic setting. The final exam will be noncumulative, but it will include chapter 3. 60 questions (10 will be on chapter 3), we will have 2 hours. Understand the characteristics of and the differences between the 4 basic market types. Perfectly competitive markets have the following features: No barriers to entry to new firms entering the industry. Firms sell similar, but not identical, products. No barriers to new firms entering the markets. Demand and marginal revenue for a firm in a monopolistically competitive market. Monopolistic competition - market structure in which barriers to entry are low and many firms compete by selling familiar, but not identical, products. The key feature is that the products that monopolistically competitive firms sell are differentiated from one another in some way. Firms in a monopolistic competition market face a downward-sloping demand curve.