1. _____/17 2. _____/25 3. _____/10 4._____/13 5._____/10 6._____/15 7._____/2 8._____/5 Name: ___________________________ Team: ___________________________ Graded By: _______________________ Total: _____/100 Unit IV: Imperfect Competition Problem Set #4 1. Define the term and give a real world example. Use numbers in your answer where applicable. a. Barriers to Entry (____/5) b. MR=MC Rule (____/3) c. Price Discrimination (____/3) d. Socially Optimal Price (____/3) e. Fair Return Price (____/3) 2. Practice FRQ a. FRQ #1 (____/14) b. FRQ #2 (____/6) c. FRQ#3 (____/5) 3. Complete the following worksheets: a. “Regulating Monopolies” (____/5) b. “A Quick Review of Perfect Competition and Monopoly” (____/5) 4. Use the chart to complete the following: (____/3) a. Explain why the MR curve less than the demand curve for all imperfectly competitive firms. Use a SPECIFIC numerical example from the chart in your explanation. ( ____/5) b. On a large graph, PLOT the demand and marginal revenue curves. On a new graph below, plot the Total Revenue. Use the total revenue test to EXPLAIN the elastic and inelastic range of the demand curve. Be sure to identify the elastic and inelastic ranges. (____/5) Price $11.00 10 9 8 7 6 5 4 3 2 Quantity Demanded 0 1 2 3 4 5 6 7 8 9 Total Revenue Marginal Revenue 5. Complete the following paragraphs: a. Compare Monopolistic Competition and Perfect Competition. (____/5) b. Explain Oligopoly. (____/5) 6. Gaxski and Awesomeski are the only two ski resorts on Mt. Econisthebest. Each firm has the option to price high or price low. The following chart is the payoff matrix for both firms. Awesomeski High Low High 250,200 150, 300 Low 350,150 200,100 Gaxski a. What is the dominant strategy for Gaxski? Explain. (____/5) b. What is the dominant strategy for Awesomeski? Explain. (____/5) c. Assume that this information is available to both firms. Assuming no collusion, how much would each firm earn? Explain how you got your answer. (____/5) 7. Stamps/Turnitin.com Receipts (____/5) 8. Format (____/5)