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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
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$100 Question from Formulas Total Cost = ?
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$100 Answer from Formulas Total Cost = Fixed Cost + Variable Cost
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$200 Question from Formulas Total Revenue = ?
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$200 Answer from Formulas Total Revenue = Price * Quantity
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$300 Question from Formulas Marginal Cost = ?
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$300 Answer from Formulas Marginal Cost = Δtotal cost/Δquantity Or Marginal Cost = Δvariable cost/Δquantity
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$400 Question from Formulas Marginal Revenue = ?
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$400 Answer from Formulas Marginal Revenue = Δtotal revenue/Δquantity
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$500 Question from Formulas Profits = ?
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$500 Answer from Formulas Profits = Total Revenue – Total Cost
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$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?
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$100 Answer from Perfect Competition Perfect Competition
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$200 Question from Perfect Competition In Perfect Competition, a firm chooses q* at what point?
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$200 Answer from Perfect Competition Where Price = Marginal Cost
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$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
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$300 Answer from Perfect Competition Increase quantity since MC($8)<Price ($10)
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$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?
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$400 Answer from Perfect Competition Profits = -$20,000 Firm should produce in the Short Run since TR>VC But exit in the Long Run
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$500 Question from Perfect Competition QMC 0--- 15 26 37 48 59 610 In Perfect Competition, the market price is $8, what is q*?
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$500 Answer from Perfect Competition Q* = 4
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$100 Question from Monopoly If there are barriers to entry in a market, then the firm must be what?
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$100 Answer from Monopoly A Monopoly
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$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?
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$200 Answer from Monopoly Could not be a Monopoly
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$300 Question from Monopoly A Monopoly choose quantity at what point?
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$300 Answer from Monopoly Where MR=MC
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$400 Question from Monopoly Where does a Monopoly set its price?
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$400 Answer from Monopoly Find q* where MR=MC, then follow that all the way up to the demand curve.
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$500 Question from Monopoly What will a Monopoly do in the short run if it has negative profits?
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$500 Answer from Monopoly It will produce only if it can cover its variable costs.
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$100 Question from Price Discrimination Suppose a firm can charge a different price to each consumer, what type of price discrimination is this?
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$100 Answer from Price Discrimination First-Degree price discrimination
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$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?
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$200 Answer from Price Discrimination Second-Degree Price Discrimination
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$300 Question from Price Discrimination When a firm charges different prices to different groups of people they are using what type of price discrimination?
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$300 Answer from Price Discrimination Third-Degree Price Discrimination
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$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?
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$400 Answer from Price Discrimination A two-part tariff
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$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?
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$500 Answer from Price Discrimination Consumer B, since they have the most inelastic demand. Which means they are the least sensitive to price.
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$100 Question from Problems LaborQuantity 110 218 324 Fill in the Average Product of Labor for each row.
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$100 Answer from Problems Your Text Here LaborQuantityAPL 110 2189 3248
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$200 Question from Problems The Average Total Cost curve is at its minimum where it crosses what curve?
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$200 Answer from Problems The Marginal Cost Curve
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$300 Question from Problems Describe Monopolistic Competition
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$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.
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$400 Question from Problems QPTR 01200 1110 2100200 390270 480320 570350 660360 If this is a Monopoly with a MC = 10, what quantity will it produce?
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$400 Answer from Problems Q = 6 calculate MR and find where it equals MC.
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$500 Question from H5 Your Text Here QMC 0--- 110 27 35 49 515 620 If this is a Competitive Firm with FC of $20, what is the Total Cost of producing 5 units?
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$500 Answer from Problems TC = 66
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Final Jeopardy QTCFCVCATCAVCMC 00-- 11310 22 32 4 56 Fill in the table
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Final Jeopardy Answer QTCFCVCATCAVCMC 010 0-- 1131031333 2151057.52.52 3161065.321 42010 52.54 53010206410
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