Show:
Perfect Competition
Monopoly
Monopolistic Competition
Oligopoly
Game Theory
100
The characteristics of perfect competition

1. many buyers and sellers

2. homogeneous goods

3. full information

4. low barriers to entry

100
These are the three characteristics of a Monopoly

What are

1. One seller

2. No close substitutes

3. High barriers to entry

100
These are the characteristics of monopolistic competition

What are

1. Many buyers and sellers

2. heterogeneous goods

3. low barriers to entry

100
These are the characteristics of an Oligopoly.

What are

1. Few sellers

2. homogeneous or heterogeneous goods

3. high barriers to entry

100
A nuclear arms race, cartel theory, and college swimming pools are all examples of _______.
What is the prisoner's dilemma?
200
It's the environment a business operates in
market structure
200
Perfect price discrimination does this to consumer surplus.
What is turns: it into producer surplus?
200
This is the reason a firm in MC might earn profits in the long run.
What is continued product differentiation?
200
It's what is really meant by "few sellers"
What is "firms are interdependent"?
200
This is the number of Nash equilibria in the coordination games we discussed in class.
What is two (three if you count the mixed strategy eq)
300
The reason firms in PC cannot earn profit in the long run.

low barriers to entry


300
It's the type of price discrimination that occurs when firms charge different prices in different locations
What is 3rd degree PD?
300
A firm in MC has a demand curve that is ________ because the firm is __________.
What are "downward sloping" and "price searcher"
300
This is simultaneously the motivation to form and cheat on a cartel.
What are higher profits?
300
This is the person for whom the Nash Equilibrium is named.
Who is John Nash?
400
This describes the profit maximizing quantity for a firm in PC
What is where MR=MC?
400
If a firm is earning profits, this must be true
What is price > ATC?
400
On the spectrum of market structures, MC is closer to ________.
What is Perfect Competition?
400
This is how firms in a cartel make profit.
What is lower quantity sold and increase price?
400
This is the way to solve sequential games.
What is from back to front? or what is rollback analysis?
500
This is the only type of advertising that makes sense in PC
What is industry advertising?
500
This is the condition that creates a natural monopoly
What are: pronounced economies of scale
500
This is a classic example of a market that is Monopolistically competitive.
What are restaurants in large cities?
500
The smallest oligopoly is this many firms and is called a ___________.
What is "two" and "duopoly"
500
This is when a Nash Equilibrium occurs
What is "when neither player can improve their outcome by changing only their strategy"?