question
allocative efficiency
answer
where MC = AR(D)
question
productive efficiency
answer
where MC = ATC
question
deadweight loss
answer
triangle formed from q, mc, d
question
consumer surplus
answer
above price, below AR(D)
question
producer surplus
answer
above MC, below price
question
Revenue maximization
answer
MR = 0
question
profit maximization
answer
MC = AR(D)
question
monopoly that that needs to shut down
answer
demand curve is entirely below the AVC curve
question
monopoly in loss minimization
answer
price is greater than average variable cost but less than average total cost
question
monopoly in profit maximization
answer
demand is above ATC
question
what area on demand curve will a monopoly maximize profits
answer
elastic area
question
perfect price discrimination
answer
MR matches the demand curve, captures all consumer surplus
question
real world price discrimination
answer
causes MR to fall somewhere between unregulated monopolist and perfect price discrimination
question
limit pricing
answer
setting prices lower than the short run profit maximizing price to discourage entry into a market
question
socially optimal price ceiling
answer
P (D) =MC
question
fair-return price ceiling
answer
P (D) =ATC
question
barriers to entry
answer
geographic, technological, government, natural
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