Monopolistic-Competition
What are the defining characteristics of monopolistic-competition?
What is meant by non-price competition?
What are some means of non-price competition?
What is the purpose of advertising?
What are the costs and benefits of advertising?
Can a monopolistic firm earn economic profits in the short run?  Explain.
Can a monopolistic firm earn economic profits in the long run?  Explain.
What is the tangency solution?
What are the costs and benefits of monopolistic competition.
What is Hotelling’s Paradox?
What are the implications of Hotelling’s paradox in the context of monopolistic competition?

Oligopoly
What are the defining characteristics of Oligopoly.
What is meant by inter-dependence of firms?
What is the prisoners dilemma?
What is meant by Nash behavior?
Know how to find a dominant strategy Nash equilibrium from a payoff matrix.
Distinguish between equilibrium and optimal outcomes of the prisoners dilemma.
What is the “tit for tat” strategy?
Do the results of the prisoners dilemma change if the game is played more than once?
If a game is played more than once, distinguish between outcomes of finite and infinitely repeated games.
What is the Dominant Firm model?
What is the behavioral assumption of the dominant firm model?
What is meant by the term competitive fringe?
Derive the demand curve of the dominant firm.
What is meant by the term residual demand?
Describe the equilibrium of the dominant firm model.  Compare the equilibrium price and output of the dominant firm model with that of a pure monopoly.
Does the dominant firm have an incentive to try to eliminate the competitive fringe firms?  If so, how might the dominant firm attempt to eliminate the competitive fringe.
What is meant by predatory pricing and why do firms engage in predatory pricing?
What is a duopoly?
What is meant by collusion? Why do firms collude?
Why are collusive arrangements unstable?