Micro 2

Many dance clubs have ‘dance teachers’ that can be hired to teach or merely accompany customers on the dance floor. The ‘dance teachers’ approach customers and make offers. Customers often make counter-offers. This behavior of ‘haggling’ is

Universities price discriminate in all types of ways. One way they do this is through tuition. Commonly, students capable of meeting certain residency requirements are charged a lower tuition than students considered out of state. This type of price discrimination is called

To maximize profit, a perfectly competitive firm will choose an output at which

The presence of the free rider is a problem for the funding of

Annual vehicle inspection is an example of a solution to the presence of an external cost (driving an unfit car imposes costs on others on the road)

Public Awareness (shame) is a possible solution to the free rider problem

Universities price discriminate in all types of ways. Something under consideration at VCU is charging Canteen customers $1.99 for a soft drink, or if purchasing two units or more, $1.50 for each soft drink, extracting more consumers’ surplus. This type of price discrimination is called

Which of the following is/are a requirement for the Coase Theorem

First degree price discrimination generates a more efficient outcome compared to a price searcher that charges everybody the same price.

Which of the following is true about private goods

An external cost is a cost experienced by people who

Which of the following is/are possible way(s) to correct for an external benefit

Which of the following is best characterized as an oligopoly?

It is possible for a transaction to generate both external costs and external benefits at the same time

A cartel is

A one- price monopolist chooses an output at which

A Firm in an oligopolistic market structure does not concern itself about how other firms in the market respond/react to the choices/decisions it makes

To maximize profit, a monopolistically competitive firm will choose an output at which

Resale must be difficult or impossible in order for price discrimination to be a possible option for a firm

Which of the following is best characterized as perfect competition?

Which of the following is/are possible way(s) to correct for an external cost

In market transactions with externalities, economic efficiency occurs where

The proper role of government includes which of the following

In market transactions without externalities, economic efficiency occurs where

According to the theory, a firm in perfect competition will lose all of its business if raises price above the market price.

A price searcher (also called a price setter) is

If the United States auctioned off the right to sell gasoline within their borders to a single firm, economics predicts the result will be

Which of the following is best characterized as an oligopoly?

Which of the following is best characterized as monopolistic competition?

The exclusive authority to determine how a resource is used is called

Which of the following examples is(are) public good(s )

An external benefit is the benefit experienced by people who

BOGO (buy one, get one more for half off) is a type of second degree price discrimination.

Barriers to entry/exit limit competition

The grocery store I shop at offers a 10% discount to senior citizens that show ID. This is

Location (where something is sold) is a possible method to successfully differentiate from competitors

A public good is a good that

A monopoly position is a guarantee of profitability

A price taker is