1- How is marginal cost derived?

2- How is marginal cost related to total cost?

3- What is the specific formula to calculate marginal cost?

4- How does a firm determine to shut down in the short-run? What rule characterizes this?

5- What is a price taker? Which of the market structures are characterized as being "price

takers"?

6- When a market is characterized as being a price taker, what fundamental shape does

the demand curve for this market take?

7- How is the demand curve for a perfectly competitive firm distinct from the demand curve

for a monopolistic market?

8- What does "downward sloping" with regards to a demand curve mean?

9- Where do firms with market power determine the quantity of product/service they will

produce?

10- What is the primary goal/objective of the firm?

11- If the firm has price setting capacity, how will they use information about marginal costs

and marginal revenues in order to accomplish their primary objective?

12- Describe the basic distinctions between the market models with respect to: number of

market participants, type of product being marketed, ease of entry/exit into the market,

and the prevalence of advertising/marketing.

13- What fundamental truth is realized when studying the behavior of an oligopolistic firm

within the context/model called "prisoner's dilemma"?

14- How might an oligopolistic firm behave like a monopoly? What forces may prevent this?