1. SIDES GAME

2. Profit Max. Q 40

3. Unregulated Price $3

4. Social Optimal Price $2.33ish

5. Fair Return Price $2

6. Unregulated Profit $40

7. Fair Return Profit $0

8. What is White’s Dominant Strategy? high

9. Unit Elastic Q 50

10. Outline DWL Drawn as a triangle, but it is not actually a triangle
Outline DWL Drawn as a triangle, but it is not actually a triangle. Just saying…

11. Monopolistic Competition
LRATC curve will be ___tangent_____ to D/AR curve

12. Fair Return Price will allow the Monopolist to earn
No accounting profit
No economic profit
A normal profit
No economic loss
A little economic profit

13. What will happen to the unregulated monopolist’s quantity of output if Total Fixed Cost increases? nothing

14. Which type of efficiency do monopolistically competitive firms produce?
Allocative
Productive
neither

15. What is the gap between the profit max
What is the gap between the profit max. Q and the Productively efficient Q for a monopolistically competitive firm called? Excess capacity

16. Which market structures earn zero long run economic profit?
Perfect competition
Monopolistic competition

17. Collusion that occurs without actual communication between firms is called
tacit

18. Which market structure has highly interdependent firms?
oligopoly

19. This occurs in a payoff matrix when neither player acting unilaterally can improve his payoff. Nash Equilibrium

20. What is the Nash Equilibrium? High high

21. A player who is best off playing a single strategy regardless of his competitor's strategy has this. Dominant strategy

22. A monopoly should decrease production if
MR<MC

23. Does price discrimination increase or decrease consumer surplus?

24. Which market structure ALWAYS features product differentiation?
Monopolistic competition

25. Name a condition of price discrimination.
Monopoly/market power
Market segregation
No resale

26. What is the Dominate Strategy Equilibrium? High high

27. Colluding oligopolistic firms are called a
cartel

28. Which will change output?
Lump sum tax
Lump sum subsidy
Per unit tax
Per unit subsidy

29. Which degree of price discrimination eliminates the most consumer surplus?
First (perfect)

30. Which degree of price discrimination is also called “perfect” price discrimination? 1st

31. Unregulated monopolies sell less at a higher price

32. What grade will you earn on tomorrow’s test?