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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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