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

Firms’ Costs -- $100 Costs that remain constant as a firm's level of output changes What are fixed costs?

Firms’ Costs -- $200 A cost that involves spending money What is an explicit cost?

Firms’ Costs -- $300 Total cost / Quantity What is average total cost?

Firms’ Costs -- $400 A cost that has already been paid and cannot be recovered What is a sunk cost?

Firms’ Costs -- $500 Law of Diminishing Returns explains why this short-run cost curve slopes upward What is marginal cost?

Short Run or Long Run -- $100 All costs are variable in the... What is the long run?

Short Run or Long Run -- $200 For competitive mkt structures, profits are competed to zero in the… What is the long run?

Short Run or Long Run -- $300 Demand curves tend to be less elastic in the… What is the short run?

Short Run or Long Run -- $400 Firms do not enter even if there are economic profits What is the short run?

Short Run or Long Run -- $400 Monopolistically competitive firms have excess capacity in the… What is the long run?

Competitive Markets -- $100 Type of product for monopolistic competition What is differentiated?

Competitive Markets -- $200 A buyer or seller who is unable to affect the market price What is a price taker?

Competitive Markets -- $300 This faces a is horizontal demand curve What is a perfectly competitive firm?

Competitive Markets -- $400 Firms seek to maximize profits where… What is MC = MR? (marginal cost = marginal revenue)

Competitive Markets -- $500 Type of efficiency where good is produced at lowest possible cost What is productively efficiency?

The –opolies -- $100 Only seller of a product with no close substitutes What is a monopolist?

The –opolies -- $200 Study of how people make decisions when attaining goals involves interacting with others What is game theory?

The –opolies -- $300 Example of a government action blocking entry to a market What is a patent, copyright, tariff?

The –opolies -- $400 An agreement among firms to charge the same price What is collusion?

The –opolies -- $500 Laws aimed at eliminating collusion and promoting competition among firms What are Anti-Trust laws?

Which Market Model -- $100 Characterized by many firms producing identical products What is a perfectly competitive market?

Which Market Model -- $200 Entry of other firms to a market is blocked What is a monopoly?

Which Market Model -- $300 Examples include manufacturing computers or automobiles What is an oligopoly?

Which Market Model -- $400 Firm profit maximization does not necessarily occur at MR = MC What is an oligopoly?

Which Market Model -- $500 Most economically efficient market structure What is a perfectly competitive market?