By the end of this chapter, you should understand:

1. perfect competition
2. why a perfectly competitive firm equates marginal cost and price
3. how profits and losses lead to entry and exit
4. the industry supply curve
5. comparative static analysis of a competitive industry
6. a market in which international trade occurs
7. pure monopoly
8. why a monopolist’s output equates MC and MR
9. how output compares under monopoly and perfect competition
10. 10 how price discrimination affects a monopolist’s output and profits