Micro Unit 4 Intro- Imperfect Competition AP Economics

Mr. Clifford provides an overview of microeconomics unit 4, focusing on imperfect competition. The video covers three market structures: monopoly, monopolistic competition, and oligopolies. It explains the characteristics and graphs of monopolies, highlighting the differences from perfect competition. The video also introduces monopolistic competition, where firms can enter the market, leading to zero economic profit in the long run. Finally, it discusses oligopolies and game theory, emphasizing the importance of understanding dominant strategies and game theory matrices.

What is a key difference between a monopoly and a perfectly competitive firm in terms of demand?

• Monopoly has a horizontal demand curve.

• Monopoly has a downward sloping demand curve.

• Monopoly has an upward sloping demand curve.

• Monopoly has a vertical demand curve.

In a monopoly, how does marginal revenue compare to demand?

• Marginal revenue is equal to demand.

• Marginal revenue is greater than demand.

• Marginal revenue is less than demand.

• Marginal revenue is not related to demand.

What happens to economic profit in the long run in monopolistic competition?

• Firms make zero economic profit.

• Firms make a negative economic profit.

• Firms make an infinite economic profit.

• Firms make a positive economic profit.

Which market structure combines elements of both monopoly and perfect competition?

• Monopolistic competition

• Perfect competition

• Oligopoly

• Duopoly

What is a dominant strategy in game theory?

• A strategy that is only used in monopolies.

• A strategy that depends on the opponent's move.

• A strategy that is never the best option.

• A strategy that is always the best regardless of what the opponent does.