Question

I. Match the term with the definition

A. Long-run        B. Nash equilibrium          C. Oligopoly    D. Price discrimination       

E. Utility              F. Monopolistic competition      G. Dominant strategy   

H. Opportunity cost        I. Diminishing Marginal Product                J. Externality

______________ is a measure of consumer satisfaction.

The market structure where many firms produce differentiated products is called _________________

In a game, if a player wants to play a certain strategy regardless of what the opponent does, we call this strategy the ______________

With fixed inputs, each additional variable input generates less additional output. This phenomenon is called ________________

The period over which the level of all inputs can be changed is called ______________.

_____________ occurs when production and consumption affect others without consequence for the producers and consumers themselves.

_______________ is the practice of charging different consumers different prices.

In a game, the state in which no player has the incentive to change their strategy given other players’ strategies is called __________________

The market structure where a few producers produce identical or differentiated products is called ______________

When you choose certain actions (say attending a class), you give up other activities you want to do. The potential benefit from the best alternative activity that you give up is called ________________

Answer 1

Answer - Utility is a measure of consumer satisfaction. It is the want satisfying power of a commodity.

Answer-The market structure where many firms produce differentiated products is called _Monopolistic competition_.

Monopolistic competion is a market where number of sellers sell differentiated products to consumers.

Answer- In a game, if a player wants to play a certain strategy regardless of what the opponent does, we call this strategy the . Dominant strategy .

Answer - With fixed inputs, each additional variable input generates less additional output. This phenomenon is called Diminishing Marginal Product .

The reason is that With fixed inputs, each additional variable input generates increase total producttivity at decreasing rate.

Answer-The period over which the level of all inputs can be changed is called Long-run.

Answer- Externality occurs when production and consumption affect others without consequence for the producers and consumers themselves.

AnswerPrice discrimination is the practice of charging different consumers different prices.

Answer-In a game, the state in which no player has the incentive to change their strategy given other players’ strategies is called Nash equilibrium

Answer-The market structure where a few producers produce identical or differentiated products is called Oligopoly

Answer-When you choose certain actions (say attending a class), you give up other activities you want to do. The potential benefit from the best alternative activity that you give up is called Opportunity cost