Jeopardy Example A merger between firms in the same industry What is a horizontal merger?

Costs & Kin -- $100 A nonmonetary opportunity cost What are implicit costs?

Costs & Kin -- $200 Total revenues minus explicit costs What is accounting profit?

Costs & Kin -- $300 Situation in which a firm's long-run average costs rise as firm increases output What are Diseconomies of Scale?

Costs & Kin -- $400 This explains why short-run marginal cost curves slope upward What is Law of Diminishing Returns?

Costs & Kin -- $500 Level of output at which all economies of scale are exhausted What is the minimum efficient scale?

The Price Is Right -- $100 Law of one price holds only if transaction costs are _____ What is zero?

The Price Is Right -- $200 Example of this pricing strategy: $9.99 instead of $10 What is odd pricing?

The Price Is Right -- $300 Ability of a firm to charge a price greater than marginal cost What is market power?

The Price Is Right -- $400 Price discrimination will not work if ________ is possible What is arbitrage?

The Price Is Right -- $500 Customers buying hardback version of a book have __________ willingness to pay than those who wait for the cheaper softback What is greater?

Competitive Markets -- $100 In long run in competitive markets, economic profits equal ______ What is zero?

Competitive Markets -- $200 Benefit of being first firm to enter a market What is first-mover advantage?

Competitive Markets -- $300 Under perfect competition, number of units a firm sells when it raises price of product What is zero?

Competitive Markets -- $400 Minimum point on firm's Avg Variable Cost (AVC) curve What is the shutdown point?

Competitive Markets -- $500 State of economy where production represents consumer preferences What is allocative efficiency?

The –opolies -- $100 Type of product produced by monopoly What is unique (aka one without close substitute)?

The –opolies -- $200 One of four main reasons monopolies arise (i.e., barriers to entry) What is Govt action blocks entry Control of a key resource Network externalities Natural monopoly (extremely large economies of scale)?

The –opolies -- $300 Tool used to assess sequential games What is Decision Tree?

The –opolies -- $400 Game in which pursuing dominant strategies results in noncooperation that leaves everyone worse off What is Prisoner’s Dilemma?

The –opolies -- $500 Apple’s dominant strategy What is charging $9.99?

Which Market Model -- $100 Industry examples: growing wheat, poultry farming What is perfect competition?

Which Market Model -- $200 Many firms, differentiated products What is monopolistic competition?

Which Market Model -- $300 NFL or NBA are examples What is a monopoly?

Which Market Model -- $400 Allocatively & productively efficient What is perfect competition?

Which Market Model -- $500 Typical firm's long- run average cost curve reaches minimum at output that is large fraction of industry sales What is an oligopoly?

Health Care Econ -- $100 UK's health care system What is socialized medicine?

Health Care Econ -- $200 Doctors and hospitals receive a payment for each service they provide What is fee-for- service?

Health Care Econ -- $300 Adverse selection and moral hazard are two main forms of this What is asymmetric information?

Health Care Econ -- $400 Measure taken by the government to reduce adverse selection problems What is mandate to buy health insurance (or face a fine)?

Health Care Econ -- $500 When insurers delegate decision- making power to doctors who may not have same interests as insurers What is principal- agent problem?

FINAL JEOPARDY