AP Micro Unit 4

How does a monopoly differ from a perfectly competitive industry with the same costs?

A monopolist and a perfectly competitive firm both

A price cut will lead to an increase in total revenue if the

Which of the following statements is true of a monopoly as compared to a perfectly competitive market with the same costs?

Which of the following is true of a natural monopoly?

Which of the following government actions is the most common for a natural monopoly in the United States?

Where the average total cost curve for a natural monopoly crosses the demand curve,

Which of the following is most likely to be higher for a regulated natural monopoly than for an unregulated natural monopoly?

A monopoly typically causes deadweight loss due to

In order to allow a natural monopoly to continue operations in the long run, the regulated price must be at least as high as the

With perfect price discrimination, consumer surplus

Which of the following characteristics is necessary in order for a firm to price-discriminate?

Price discrimination

A price-discriminating monopolist will charge a higher price to consumers with

Which of the following is a common practice of single-price monopolists?

In order to carry out perfect price discrimination, a firm must know each

A perfectly price-discriminating monopolist

When firms cooperate to raise their joint profits, they are necessarily

Within a group of firms, if the actions of the firms affect each other's profits, the firms are necessarily

An agreement among several producers to restrict output and increase profit is necessary for

Oligopolists are tempted to produce more than the quantity that would maximize industry profits because when they increase output,

Which of the following will make it easier for firms in an industry to maintain positive economic profit?

Oligopolistic firms that engage in direct price competition will stop undercutting each other's prices when the price reaches the

In the United States, price-fixing is

Each player has an incentive to choose an action that, when both players choose it, makes them both worse off than if neither had chosen it. This situation describes

Which of the following is true of every Nash equilibrium?

A situation in which each player in a game chooses the action that maximizes his or her payoff, given the actions of the other players and ignoring the effects of his or her action on the payoffs received by others, is known as a

Based on the payoff matrix provided, Justin will

In the context of the Richard and Justin story in the Module, suppose that Justin discovers Richard's action (confess or don't confess) before choosing his own action.

Relative to the Nash equilibrium outcome in the classic prisoners' dilemma game, the opportunity to successfully cooperate would

Which of the following is necessarily true if both players have a dominant strategy in a game?

Having which of the following makes it easier for oligopolies to coordinate on raising prices?

If the bike shops in Cycle City do not have a formal agreement on pricing, but they increase their profits by adopting the prices of a price leader, these firms are necessarily participating in

When was the first federal legislation against cartels passed?

Antitrust policy is designed to

Oligopolists engage in tacit collusion in order to

When a firm considers how its behavior will affect the future actions of its competitors, it necessarily engages in

Firms successfully engaged in tacit collusion are unlikely to

Which of the following necessarily exists for a monopolistic competitor in the short run?

Which of the following is a characteristic of monopolistic competition?

Which of the following necessarily exists for a monopolistic competitor in the long run?

Which of the following best describes a monopolistic competitor's demand curve?

The long-run outcome in a monopolistically competitive industry results in

Which of the following is generally true for a firm in a monopolistically competitive industry but not for a monopolist?

Which of the following will necessarily eliminate profits in a monopolistically competitive industry in the long run?