```Unit 4 Problem Set
Name
Team Name
Integrity Agreement
I, (insert your name here), agree that all of the
work in this presentation is my original work. I
agree to keep this work to myself this year and
for future years. I understand that if this work
is not my own original work or if I share my
original work with others, that I will be sent to
Digital Signature: type your full name here
1. Define the term and give a real world example. Use numbers in
a. Barriers to Entry (____/5)
1b. MR=MC Rule (____/3)
1c. Price Discrimination (____/3)
1d. Socially Optimal Price (____/3)
1e. Fair Return Price (____/3)
2. Practice FRQ
a. FRQ #1 (____/14)
-See worksheet
b. FRQ #2 (____/6)
-See worksheet
c. FRQ #3 (____/5)
-See worksheet
3. Complete the Following Worksheets
a. “Regulating Monopolies” (____/5)
b. “A Quick Review of Perfect Competition and
Monopoly” (____/5)
4. Complete the following chart (____/3)
Price
Quantity
Demanded
\$11.00
0
10
1
9
2
8
3
7
4
6
5
5
6
4
7
3
8
2
9
Total Revenue
Marginal Revenue
4a. 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)
4b. 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.
On your graphs, be sure to identify the elastic and inelastic ranges.
(____/5)
only (the part where it says to explain the elastic and inelastic
range of the demand curve). Attach the graphs to the following
slide.
Graph for 4b
Place your 2 graphs for 4b on this slide. Make
sure they are placed one on top of the other
(not side by side)
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
Gaxski
HIGH
LOW
HIGH
250, 200
150, 300
LOW
350, 150
200, 100
a. What is the dominant strategy for Gaxski? Explain.
6b. What is the dominant strategy for Awesomeski?
Explain.
.
6c. Assume that this information is available to both firms.
Assuming no collusion, how much would each firm earn?
6. Turn It In Receipts ( _____/5)
-See ‘stamp sheet’
7. Format ( _____/5)
• 1. _____/17
• 2. _____/25
• 3. _____/10
• 4._____/13
Total: _____/100
5._____/10
6. _____15
7. _____/5
8. _____/5
Peer Graded by: (drop in a comment box with
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