Monopolistic Competition
This is the primary way firms compete besides price, often involving branding or advertising.
What is non-price competition?
Describe the number of firms in an oligopoly and how much market share these firms have combined.
What is 3-4 firms with 60-80% of the market share.
This is the primary reason monopolies can persist in the long run, preventing new competitors from entering.
What are barriers to entry?
Name Ms. McG's dogs.
Who are Walter and Millie?
This type of efficiency is achieved when P=MC.
What is allocative efficiency?
Unlike perfectio competition, the demand curve for a monopolistically competitive firm has this type of slope?
What is downward sloping? What is a negative slope?
This branch of mathematics is frequently used to model the strategic interactions between oligopolistic firms.
For a single-price monopolist, Marginal Revenue is always less than this value or curve.
What is demand or price?
This is the national animal of Scotland.
What is the unicorn?
This type of efficiency is achieved when a firm produces at the minimum of its ATC.
What is allocative efficiency?
Name one way that monopolistically competitive firms are different from perfectly competitive firms.
What are some control over price, differentiated products, and some barriers to entry?
This is a formal agreement between firms to coordinate prices or production levels, which is illegal in the U.S.
What is a cartel or collusion?
This type of monopoly occurs when one firm can supply the entire market at a lower cost than two or more firms could
What is a natural monopoly?
Ms. McG is this age.
40
This triangle represents the loss of total surplus when a market is not perfectly competitive.
What is deadweight loss?
Explain why this market structure is called "Monopolistic Competition."
What is because there are many firms (competition), but each firm tries make their product unique.
Oligopolies are defined by this characteristic, meaning one firm's actions significantly affect the others.
What is mutual interdependence?
This is the practice of selling the same good at different prices to different customers based on their willingness to pay.
What is price discrimination?
This is the current chair of the Federal Reserve Bank.
Who is Jerome Powell?
Of the four structures, this is the only one that is both allocatively and productively efficient in the long run.
What is perfect competition?
In the long run, entry of new firms causes the demand curve for an existing firm to shift in this direction.
Differentiate between a dominant strategy and Nash Equilibrium.
What is: A dominant strategy is when a firm will choose an action no matter what the other player does. Nash Equilibrium is an outcome in which neither party has an incentive to change their behavior.
A monopolist maximizes profit by producing where MR=MC, but sets the price based on this curve.
What is the demand curve?
Ms. McG has a history degree. This was her area of study.
What is genocide studies and WWII area history?
This is the rule used to determine if a firm should stop producing in the short run, regardless of market structure.
What is the price is lower than AVC?