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WEEKS 7-12 ECON102 FLASHCARDS > WEEK 7 > Flashcards

WEEK 7 Flashcards

1
Q

There are many what in perfect competition

A

Many buyers
Many sellers

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2
Q

In perfect competition outputs from sellers are

A

Homogeneous

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3
Q

In perfect competition buyers know what

A

All the info from all the sellers

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4
Q

Are there barriers to entry in perfect competition

A

No

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5
Q

How are the products in imperfect competition

A

Different to other competitors

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6
Q

Many firms are what in imperfect competition

A

Price setters

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7
Q

Can firms raise prices in imperfect competition

A

Yes

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8
Q

In perfect competition demand is

A

Perfectly elastic

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9
Q

In imperfect competition demand is

A

Downwards sloping

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10
Q

What are the 3 types of imperfect competition

A

Pure monopoly
Oligopoly
Monopolistic competition

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11
Q

Monopoly characteristics

A

many buyers
1 seller
No close substitutes
Buyers informed of competing suppliers
Barriers to entry

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12
Q

What are the 3 revenues

A

Average revenue - AR
Total revenue - TR
marginal revenue - MR

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13
Q

How to get TR from AR

A

Times AR by Q

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14
Q

How to get MR from TR

A

Differentiate TR

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15
Q

What are the 3 costs

A

Total cost - TC
Average Cost - AC
Marginal cost - MC

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16
Q

How to find AC from TC

A

Divide TC by Q`

17
Q

How to find MC from TC

A

Differentiate TC

18
Q

When is profit maximized

A

When TR>TC and vertical distance between TR and TC is greatest

19
Q

In math’s questions MR = what

A

MR = MC

20
Q

Why are monopolies inefficient in terms of price

A

Prices are higher since sole firm

21
Q

Why are monopolies inefficient in terms of quantity

A

The quantity will go down so less goods and services

22
Q

Why are monopolies inefficient in terms of surplus

A

The customer surplus is smaller so customers pay more and receive less value

23
Q

3 conditions for price discrimination

A

Price setter
Can identify customers
Customer’s can’t resell

24
Q

Example of a 2nd degree price discrimination

A

Promotion codes

25
Q

Example of a 3rd degree price discrimination

A

Older people take buses instead of walking whereas younger people walk

26
Q
A

WEEKS 7-12 ECON102 FLASHCARDS (7 decks)

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