The production possibilities curve.

1. Explain the production possibilities curve. What does the slope of the curve represent? What factors cause the curve
   to move outward?
2. List and briefly discuss the non-price determinants supply and demand.
3. Define the price elasticity of demand and explain now total revenue is related to price elasticity.
4. Define consumer and producer surplus and exptain how they’re used to define market efficiency.
5. Define marginat revenue and marginal cost. Explain their relevance to the firm’s profit-maximizing decision.
6. Compare and contrast the four market structures; perfect competition, monopolistic competition, oligopoly and
   monopoly.

Sample Solution