Monopoly
Monopoly 2.0
Oligopoly
Monopolistic Competition
Optional
100
If a firm has the ability to raise price above the competitive level by reducing output, then that firm is said to have this.
What is market power?
100
If a monopolist sees increasing returns to scale, this will be the shape of its average total cost curve.
What is downward sloping?
100
This is the simplest form of oligopoly with only two firms.
What is a duopoly?
100
The demand curve for a monopolistically competitive firm takes on this shape.
What is downward sloping?
100
This type of market structure is characterized by many sellers, many buyers, free entry and exit as well as slightly differentiated products.
What is monopolistic competition?
200
This is the rule for determining the optimal output for a monopolist.
What is marginal revenue (MR) equals marginal cost (MC)?
200
Patents and copyrights are examples of this barrier to entry that facilitates monopoly power.
What are government created barriers?
200
A cartel is the strongest form of this.
What is collusion?
200
Gas stations, dry cleaners and hair salons employ this type of differentiation to separate themselves from the competition.
What is differentiation by location?
200
This type of market is characterized by a single, dominant firm.
What is a monopoly?
300
In perfect competition, if a firm raises its prices, then this will be the outcome.
What is the firm loses all its customers?
300
Generally speaking, the price a monopoly charges will be this, relative to the price of a competitive market.
What is a higher price than the competitive price?
300
Price wars are the result of this.
What is non-cooperative behavior in an oligopolistic setting?
300
Firms in monopolisitic competition produce output optimally at the point where this is true.
What is marginal revenue (MR) equals marginal cost (MC)?
300
These are two ways that firms attempt to differentiate their products, even when the product differences themselves don’t seem meaningful.
What are advertising and branding?
400
If regulation is used to control a monopoly, this is the point where the regulated price should optimally be set.
What is the intersection between demand and average total cost?
400
A monopolist sets their optimal quantity and then charges a price where that quantity intersects this.
What is the demand curve?
400
This subset of economics devoted primarily to interactions between players is one lens through which we can analyze oligopolistic outcomes.
What is game theory?
400
Vendors in a mall food court employ this type of differentiation to try and separate themselves from the competition.
What is differentiation by style or type?
400
This type of market is primarily characterized by a few sellers, large number of buyers and high barriers to entry.
What is an oligopoly?
500
This barrier to entry often results in the formation of a natural monopoly.
What are increasing returns to scale?
500
This potential solution to a troubling monopoly would establish an public agency to provide the good and protect the interests of consumers.
What is public ownership?
500
These are three of the four factors that often prevent an oligopoly from acting as a monopoly.
What are larger number of firms, complex products and pricing schemes, differences in interests and bargaining power of buyers?
500
If a monopolistically competitive firm is experiencing short run economic profit, these are the changes that the market experiences in the long run.
What is firms will enter the market, thereby reducing existing firm profits to go to zero as the demand for their products shifts to the left?
500
In game theory, this is a term for a situation in game theory where no players in the game have any incentive to change their strategy.
What is a Nash equilibrium?
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