Jeopardy Formulas Perfect Competition Monopoly Price Discrimination Problems Q $100 Q $200 Q $300 Q $400 Q $500 Q $100 Q $200 Q $300 Q $400 Q $500 Final Jeopardy

$100 Question from Formulas Total Cost = ?

$100 Answer from Formulas Total Cost = Fixed Cost + Variable Cost

$200 Question from Formulas Total Revenue = ?

$200 Answer from Formulas Total Revenue = Price * Quantity

$300 Question from Formulas Marginal Cost = ?

$300 Answer from Formulas Marginal Cost = Δtotal cost/Δquantity Or Marginal Cost = Δvariable cost/Δquantity

$400 Question from Formulas Marginal Revenue = ?

$400 Answer from Formulas Marginal Revenue = Δtotal revenue/Δquantity

$500 Question from Formulas Profits = ?

$500 Answer from Formulas Profits = Total Revenue – Total Cost

$100 Question from Perfect Competition If the marginal revenue that a firm receives from producing one more unit exactly equal to the price it charges then what must be true?

$100 Answer from Perfect Competition Perfect Competition

$200 Question from Perfect Competition In Perfect Competition, a firm chooses q* at what point?

$200 Answer from Perfect Competition Where Price = Marginal Cost

$300 Question from Perfect Competition A Perfectly Competitive firm is selling 100 units at a market price of $10. It’s profits are $50,000, and the MC of the 100 th unit is $8, what should they do? Increase quantity Keep quantity constant Decrease quantity

$300 Answer from Perfect Competition Increase quantity since MC($8)<Price ($10)

$400 Question from Perfect Competition A firm has TR of 40,000 FC of $50,000 VC of $20,00 What are profits? What should the firm do in the Short Run? The Long Run?

$400 Answer from Perfect Competition Profits = -$20,000 Firm should produce in the Short Run since TR>VC But exit in the Long Run

$500 Question from Perfect Competition QMC In Perfect Competition, the market price is $8, what is q*?

$500 Answer from Perfect Competition Q* = 4

$100 Question from Monopoly If there are barriers to entry in a market, then the firm must be what?

$100 Answer from Monopoly A Monopoly

$200 Question from Monopoly Suppose a firm made positive profits in the short run but zero profits in the long run this firm could not be what?

$200 Answer from Monopoly Could not be a Monopoly

$300 Question from Monopoly A Monopoly choose quantity at what point?

$300 Answer from Monopoly Where MR=MC

$400 Question from Monopoly Where does a Monopoly set its price?

$400 Answer from Monopoly Find q* where MR=MC, then follow that all the way up to the demand curve.

$500 Question from Monopoly What will a Monopoly do in the short run if it has negative profits?

$500 Answer from Monopoly It will produce only if it can cover its variable costs.

$100 Question from Price Discrimination Suppose a firm can charge a different price to each consumer, what type of price discrimination is this?

$100 Answer from Price Discrimination First-Degree price discrimination

$200 Question from Price Discrimination When a firm charges different prices for different amounts of goods (i.e. bundling) they are using what type of price discrimination?

$200 Answer from Price Discrimination Second-Degree Price Discrimination

$300 Question from Price Discrimination When a firm charges different prices to different groups of people they are using what type of price discrimination?

$300 Answer from Price Discrimination Third-Degree Price Discrimination

$400 Question from Price Discrimination When a firm charges an upfront fee along with additional charges later on, they are using what type of price discrimination?

$400 Answer from Price Discrimination A two-part tariff

$500 Question from Price Discrimination Your Text Here Customer TypeElasticity of Demand A- 4.2 B- 0.7 C- 1.8 D- 2.1 E- 3.6 If a firm wants to start using third-degree price discrimination, and each consumer has a different elasticity of demand, which customer would most likely pay the highest price?

$500 Answer from Price Discrimination Consumer B, since they have the most inelastic demand. Which means they are the least sensitive to price.

$100 Question from Problems LaborQuantity Fill in the Average Product of Labor for each row.

$100 Answer from Problems Your Text Here LaborQuantityAPL

$200 Question from Problems The Average Total Cost curve is at its minimum where it crosses what curve?

$200 Answer from Problems The Marginal Cost Curve

$300 Question from Problems Describe Monopolistic Competition

$300 Answer from Problems There are several to many firms in the market. There is free entry and exit. Non-identical Products. Firm acts like a Monopoly in the short run (chooses MR=MC) Due to free entry and exit are like perfect competition in the Long Run.

$400 Question from Problems QPTR If this is a Monopoly with a MC = 10, what quantity will it produce?

$400 Answer from Problems Q = 6 calculate MR and find where it equals MC.

$500 Question from H5 Your Text Here QMC If this is a Competitive Firm with FC of $20, what is the Total Cost of producing 5 units?

$500 Answer from Problems TC = 66

Final Jeopardy QTCFCVCATCAVCMC Fill in the table

Final Jeopardy Answer QTCFCVCATCAVCMC