Imperfectly Competitive Markets
Monopolies
Price Discriminating Monopolies
Monopolistic Competition
Oligopoly
100
True or False: Companies maximize profits in imperfect competition.
What is true
100
This is where profit is maximized.
What is MR=MC
100
This is the value of the consumer surplus in perfect price discrimination.
What is 0
100
Give an example of a firm operating in a monopolistically competitive market.
What are restaurants, clothing, household items, hair salons, bakeries, etc.
100
Game theory is used to explain...
What is strategic behavior between two firms
200
What does a firm need to do in order to sell another unit of a good?
What is reduce price
200
Identify the profit maximizing point and price for this firm, and the socially optimal point. 
PM: Q1 and P1
SO: Q2 and P2
200
This is when price discriminating monopolies are allocatively efficient.
What is when price=MC
200
This is the slope of the demand curve.
What is negative or downward slope
200
A Nash Equilibrium occurs when...
What is two firms choosing the same cell in a payoff matrix
or
best each firm can do given the other players choice
300
MR is less than Demand because
To sell another unit the firm must reduce the price for everyone.
(Bonus 300) if they can say except Price discriminating firms and use the example of airline tickets.
300
How is price determined in a monopoly?
What is where MR=MC, up to the demand curve, and over to price
300
These are 2 results of price discrimination.
What are more profit, no CS, no deadweight loss
300
These are 2 characteristic of monopolistic competition.
What are many sellers, product differentiation, easy exit and entry, minimal price control
300
3 characteristics of Oligopoly are
What is few large producers, identical or differentiated products, high barriers to entry, price makers, mutual interdependence
400
These are the 3 barriers for entry.
What are the high fixed or start up costs, geography or ownership of raw materials, legal barriers
400
Name 2 characteristics of monopolies.
What is one big firm, unique product, high barriers, price makers, some advertising
400
What is the difference in graph for a perfect price discriminating monopoly and a single price monopoly?
What is PPD has one curve (MR, P, AR, D). Single price has a downward sloping Demand curve with a separate MR curve below it.
400
This is where price and quantity is maximized, and the total profit.
What is Q 25, and P $10, Profit $100
400
Define dominant strategy
What is the same method one player will choose regardless of the others actions.
500
Productive Efficiency is achieved here (graphically), and Allocative Efficiency is achieved here (graphically)
Where is Price= Min. ATC (Productive) and Price= MC (allocative)?
500
Total revenue is maximized on what point on the graph?
What is when MR = 0
500
Define Price Discriminating Monopolies
What is practice of selling the same products to different buyers at different prices?
500
What will happen to the number of firms in the market based on this graph
What is firms will enter the market because they are attracted to profit.
500
In this situation, firms in an oligopoly agree—formally or informally—to limit competition by setting prices or output, but each firm still has an incentive to cheat in pursuit of higher individual profits, making the agreement unstable.
What is collusion (or a cartel)?