Fill in the blanks.
Players,(....) , and payoffs are the defining characteristics of a game. At the Nash equilibrium of a game, everyone is playing a (....) .
A firms long-run supply curve is the portion of the [... ] cost that is above the marginal cost curve. The long-run competitive market equilibrium price must be such that all firms earn zero profit because [ ... ] .
If [.......] is greater than marginal cost the firm can increase profits by producing more output.
The following is an example of a source of monopoly power: [ ......] . The monopoly market output is inefficient due to [...] .
Amusement parks generally charge a lower price for admissions for children; this is an example of [.. ] price discrimination. If the amusement park could charge every individual their exact willingness to pay then this would be [ ...... ] price discrimination.
Answer: Players, strategies and payoffs are the defining characteristics of a game. At the Nash equilibrium of a game , everyone is playing a dominant strategy.
A firm's long -run supply curve is the portion of the marginal cost curve that lies above the average total cost curve. The long-run competitive market equilibrium price must be such that all firms earn zero profit because price equals average total cost.
If marginal revenue is greater than marginal cost the firm can increase profits by producing more output.
The following is an example of monopoly power: Barriers to entry . The monopoly market output is inefficient due to lower output and high price.
Amusement parks generally charge a lower price for admissions for children , this is an example of second degree price discrimination.
If the amusement park could charge every individual their exact willingness to pay then this would be first degree price discrimination.
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