• What are the characteristics of price-taker markets? What do each of these characteristics mean for a market?
• What is the decision rule for firms to maximize profits?
• What happens to total revenue for a good with an elastic demand if the price increases? Why?
• What do economists consider for profit that accountants don't? Give two examples that would fit in this difference.
• Graph the MC, ATC, AVC, and AFC curves (a sketch is fine, specific numbers are not needed).
• What happens in a perfectly competitive market if the market price is below firms' minimum average total cost? Describe that shift from the short run to the long run.