TOPICS FOR EXAM # 2

Friday, March 22

Topics: All lectures, readings (Chpt 8.8 to 11.15), & HW's

Note: This list is NOT all-inclusive.

Consumer and Market Demand

Consumer Surplus

Repeat #2b from Exam #1

Derive the Mkt demand curve

(By Graph, in words and by math)

Elasticity of mkt demand

relationship to TR

Graph/Math: Demand curves, TR, MR, AR

Elasticity of demand for ISU education

Factors that influence elasticity and how

Production Theory (Theory of the Firm)

Determinants of Prodct'n

Short & Long Run

Prodct'n fctn

Returns to scale

Graphically:

Expansion path

TP, MP, AP,

Optimal mix of inputs (based on relative prices, graph)

Conditional Factor Demands (mathematically)

Costs: (def'ns, graphs, and mathematical fct'n)

LRTC, LRMC, LRAC

SRTC, SRMC, SRAC

FC, VC,

Implicit / Explicit Costs

Cost min in SR and LR (Mathematically / Graphically)