Download Jeopardy -- Final Exam Review (6/8)

Jeopardy Example
A merger between
firms in the same
industry
What is a horizontal
merger?
Costs & Kin -- $100
A nonmonetary
opportunity cost
What are implicit
costs?
Costs & Kin -- $200
Total revenues minus
explicit costs
What is accounting
profit?
Costs & Kin -- $300
Situation in which a
What are
firm's long-run
Diseconomies of
average costs rise as
Scale?
firm increases output
Costs & Kin -- $400
This explains why
short-run marginal
cost curves slope
upward
What is Law of
Diminishing Returns?
Costs & Kin -- $500
Level of output at
which all economies
of scale are
exhausted
What is the minimum
efficient scale?
The Price Is Right -- $100
Law of one price
holds only if
transaction costs are
_____
What is zero?
The Price Is Right -- $200
Example of this
pricing strategy:
$9.99 instead of $10
What is odd pricing?
The Price Is Right -- $300
Ability of a firm to
What is market
charge a price greater
power?
than marginal cost
The Price Is Right -- $400
Price discrimination
will not work if
________ is possible
What is arbitrage?
The Price Is Right -- $500
Customers buying
hardback version of a
book have __________
What is greater?
willingness to pay than
those who wait for the
cheaper softback
Competitive Markets -- $100
In long run in
competitive markets,
What is zero?
economic profits
equal ______
Competitive Markets -- $200
Benefit of being first
firm to enter a
market
What is first-mover
advantage?
Competitive Markets -- $300
Under perfect
competition, number
of units a firm sells
What is zero?
when it raises price of
product
Competitive Markets -- $400
Minimum point on
firm's Avg Variable
Cost (AVC) curve
What is the shutdown
point?
Competitive Markets -- $500
State of economy
where production
What is allocative
represents consumer efficiency?
preferences
The –opolies -- $100
Type of product
produced by
monopoly
What is unique (aka
one without close
substitute)?
The –opolies -- $200
One of four main
reasons monopolies
arise (i.e., barriers to
entry)
What is
1. Govt action blocks entry
2. Control of a key resource
3. Network externalities
4. Natural monopoly
(extremely large
economies of scale)?
The –opolies -- $300
Tool used to assess
sequential games
What is Decision
Tree?
The –opolies -- $400
Game in which
pursuing dominant
strategies results in
noncooperation that
leaves everyone
worse off
What is Prisoner’s
Dilemma?
The –opolies -- $500
Apple’s dominant strategy
What is charging $9.99?
Which Market Model -- $100
Industry examples:
growing wheat,
poultry farming
What is perfect
competition?
Which Market Model -- $200
Many firms,
differentiated
products
What is monopolistic
competition?
Which Market Model -- $300
NFL or NBA are
examples
What is a monopoly?
Which Market Model -- $400
Allocatively &
What is perfect
productively efficient competition?
Which Market Model -- $500
Typical firm's longrun average cost
curve reaches
minimum at output
that is large fraction
of industry sales
What is an oligopoly?
Health Care Econ -- $100
UK's health care
system
What is socialized
medicine?
Health Care Econ -- $200
Doctors and hospitals
receive a payment for What is fee-foreach service they
service?
provide
Health Care Econ -- $300
Adverse selection and
What is asymmetric
moral hazard are two
information?
main forms of this
Health Care Econ -- $400
Measure taken by the
What is mandate to
government to
buy health insurance
reduce adverse
(or face a fine)?
selection problems
Health Care Econ -- $500
When insurers
delegate decisionmaking power to
What is principaldoctors who may not agent problem?
have same interests
as insurers
FINAL JEOPARDY