| Monopolistic Competition ♡ | Perfect Competition ☀︎ | Monopolies ☃ | Oligopoly ♨︎ | EXTRA!!!!!! @(・●・)@ |
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What are zero economic profits in the long run?
Monopolistically competitive markets and perfectly competitive markets are similar in that they both have
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What is normal profit?
In the long run, firms can only make this type of profit.
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What is the price of the good?
A monopolistic firm's average revenue is always equal to...
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What are high?
The barriers of entry for an oligopoly.
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What is vertical integration to create a monopoly
Andrew Carnegie used _______________ with steel.
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What are many?
Monopolistically competitive markets have ___________ firms
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What is where MC=ATC?
The point at which the firms achieve productive efficiency
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What is the price on the demand curve for the good where marginal revenue equals marginal cost?
How a monopolistic firm determines the price of its good.
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What is false?
True or False: If a player follows her dominant strategy they will get the best outcome.
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What is Nash equilibrium?
Condition in which a player does not have an incentive to deviate from his choice even after considering his opponent’s decision
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What is easy?
It is relatively ______ to enter a monopolistically competitive market
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What are the lowest sustainable prices possible?
The perfectly competitive market will have these types of prices.
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What is the ability to influence price by adjusting quantity supplied? (Market power)
They key difference between monopolies and competitive markets is
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What are comprised of a small number of large firms, sell identical or differentiated products, and high barriers of entry?
The three most important characteristics of an oligopoly.
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What are anti-trust laws, approving/not approving mergers, and deregulation?
What are three ways the government regulates competition?
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What is excess capacity?
The situation in which the monopolistically competitive firm is producing at a lower output than it is capable of
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What is the firm should exit?
A firm has TR of 40,000, FC of $50,000, and VC of $20,00. What should the firm do in the long run?
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What is increased incentive (for creative activity)?
Patent and copyright laws lead to
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What is none?
Tamara and Sabrina both sell oranges. If both set high prices, Sabrina will earn profit of $50 while Tamara will earn a profit of $30. If both set low prices, Sabrina will earn a profit of $30 while Tamara will earn a profit of $30. If Tamara sets a low p
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What is predatory pricing?
Selling a product below cost to drive competitors out of the market is called ______ ______.
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What is advertising?
One mechanism through which monopolistically competitive firms differentiate their products
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What is increase quantity?
A perfectly competitive firm is selling 100 units at a market price of $10. Its profits are
$50,000, and the MC of the 100th unit is $8. What should they do? |
What are
-key resource is owned by a single firm -government gives a single firm exclusive right to produce a good or service -costs of production make a single producer more efficient than large numbers of producers
The three main sources of a monopoly are...
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What is a group of firms that get together to make output and price decisions.
http://www.cliffsnotes.com/more-subjects/economics/monopolistic-competition-and-oligopoly/~/media/14E62B3FF608457D8D5B3CF600B44A40.ashx
What is a cartel and draw a graph with the oligopolistic cartel profit maximization.
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Who is Adam Smith?
Every individual necessarily labours to render the annual revenue of the society as great as he can... led by an invisible hand to promote an end which was no part of his intention... By pursuing his own interest he frequently promotes that of the society
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