Learning Outcome Statements

1. Characteristics of Different Market Structures

a. describe characteristics of perfect competition, monopolistic competition, oligopoly, and pure monopoly;

2. Perfect Competition

b. explain relationships between price, marginal revenue, marginal cost, economic profit, and the elasticity of demand under each market structure;

c. describe a firm's supply function under each market structure;

d. describe and determine the optimal price and output for firms under each market structure;

e. explain factors affecting long-run equilibrium under each market structure;

3. Monopolistic Competition

b. explain relationships between price, marginal revenue, marginal cost, economic profit, and the elasticity of demand under each market structure;

c. describe a firm's supply function under each market structure;

d. describe and determine the optimal price and output for firms under each market structure;

e. explain factors affecting long-run equilibrium under each market structure;

4. Oligopoly

b. explain relationships between price, marginal revenue, marginal cost, economic profit, and the elasticity of demand under each market structure;

c. describe a firm's supply function under each market structure;

d. describe and determine the optimal price and output for firms under each market structure;

e. explain factors affecting long-run equilibrium under each market structure;

5. Monopoly

b. explain relationships between price, marginal revenue, marginal cost, economic profit, and the elasticity of demand under each market structure;

c. describe a firm's supply function under each market structure;

d. describe and determine the optimal price and output for firms under each market structure;

e. explain factors affecting long-run equilibrium under each market structure;

6. Price Discrimination

f. describe pricing strategy under each market structure;

7. Identification of Market Structure

g. describe the use and limitations of concentration measures in identifying market structure;

h. identify the type of market structure within which a firm operates.