Unit 4 Imperfect Comp Review

The airline industry is most likely in the market structure called

• perfect competition
• oligopoly
• monopolistic competition
• monopoly

What is the Nash Equilibrium?

• Both fast-food restaurants should choose to concentrate on fries.

• Both fast-food restaurants should choose to concentrate on burgers.

• Brewer’s should choose to concentrate on fries, and Royal’s should choose to concentrate on burgers.

The image above shows a firm making

• Economic Profit

• Economic loss

• Breaking even

• Shutting down

Collusion most frequently occurs in industries that are

• oligopolistic

• monopolistically competitive

• monopolistic

• perfectly competitive

A monopoly can price discriminate between two groups of consumers if each group has

• a large consumer surplus.

• a different willingness to pay.

• the same willingness to pay.

• the ability to resell the good to the other group.

For the unregulated, single-price monopoly shown in the figure above, when its profit is maximized, output will be

• 4 units per year and the price will be $6.

• 4 units per year and the price will be $4.

• 6 units per year and the price will be $4.

• 5 units and $5

• 10 units and $0

For this monopolist, what is the area of consumer surplus?

• ABHJ
• AJGC
• ARJ
• ARJE

Total revenue for this monopoly is represented by area:

• 0CGE
• 0AJE
• AJHB
• BAJH

This monopoly will maximize profits at what price?

• A
• B
• C
• R
• M

If the monopolist were to produce at the socially optimal output, quantity and price would be

• Q1 & P1
• Q2 & P3
• Q1 & P2
• Q3 & P2
• Q1, P4