Imperfectly Competitive Markets
Monopolies
Price Discriminating Monopolies
Monopolistic Competition
Oligopoly
100
True or False: Companies maximize profits in imperfect competition.
What is true
100
A local utility company is this type of monopoly
What is a natural monopoly
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 cell another unit of a good?
What is reduce price
200
A single price monopoly's MR curve is located...
What is below demand curve
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
This is the formula for determining the profit maximizing quantity
What is MR=MC
300
How is price determined in a monopoly?
What is where MR=MC, up to the demand curve
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 2 barriers to 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
This efficiency is when P=MC
Allocative efficiency
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
Who has the dominant strategy?
Who is no one. There is no dominant strategy