Micro-Economics A2

Mind map of A2 micro-economics syllabus

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Micro-Economics A2 by Mind Map: Micro-Economics  A2

1. Costs and revenues

1.1. costs

1.1.1. fixed

1.1.2. variable

1.2. Revenues

2. Profit maximisation

2.1. normal profit AR=AC

2.2. supernormal profit (AR>AC

2.3. optimal output: MC=MR

3. Perfect competition

3.1. if

3.1.1. many buyers/sellers

3.1.2. unified good

3.1.3. no bariers to entry

3.1.4. no externalities

3.1.5. perfect info.

3.1.6. no economies of scale

3.2. benfits + costs

3.2.1. opposite to monopoly

3.3. Short run

3.3.1. number of firms

3.3.1.1. big

3.3.1.1.1. supernormal profit

3.3.1.2. very big

3.3.1.2.1. loss

3.4. Long run

3.4.1. MC=AC=D=AR=MR

3.4.1.1. normal profits

4. efficiency + surplus

4.1. effiency

4.1.1. dynamic

4.1.1.1. product

4.1.1.2. process

4.1.2. static

4.1.2.1. X effiency

4.1.2.2. production effiency

4.1.2.3. allocative effiency

4.2. surplus

4.2.1. consumer

4.2.2. producer

5. concentration

5.1. high fixed/sunk costs?

5.1.1. yes: high concentration

5.1.2. no: low concenration

5.2. growth

5.2.1. internal

5.2.1.1. re-investement of retained profits

5.2.2. external

5.2.2.1. horizontal

5.2.2.2. vertical

5.2.2.3. conglomerate

5.2.2.4. lateral

6. Price discrimination

6.1. different elasticities of demand

6.1.1. 1rst degree

6.1.2. 2nd degree

6.1.3. 3rd degree

7. Monopoly

7.1. barriers to entry

7.1.1. predatory pricing

7.1.2. capacity expansion

7.1.3. acquisition

7.1.4. product differentiation

7.2. evaluation

7.2.1. benefits

7.2.1.1. economies of scale

7.2.1.1.1. lower prices

7.2.1.2. re-investement

7.2.1.2.1. increased living standards

7.2.1.3. charity donation

7.2.2. costs

7.2.2.1. mis-allocation of ressources

7.2.2.2. X inefficincy productive inefficienty

7.2.2.3. restricted supply

7.2.2.3.1. higher prices?

8. oligopoly

8.1. If

8.1.1. concenration ratio > 60%

8.2. collusion

8.2.1. explicit

8.2.1.1. illegale

8.2.2. natural cycle

9. contestable markets

9.1. fixed cost

9.2. barriers to entry

9.3. competition

9.4. supernormal profits

10. market structure + technological changes

10.1. monopoly

10.1.1. = price maker

10.2. oligopoly

10.2.1. = price makers + price takers

10.3. "somewhere in the middle"

10.3.1. = depends on market share of firm

10.4. perfect competition

10.4.1. = always price takers

10.5. technology

10.5.1. reduced cost

10.5.1.1. productive effcienty

10.5.1.2. process efficienty

10.5.2. better product

10.5.2.1. product (dynamic) efficienty