G-202 EXAM TWO COMPREHENSIVE
EVALUATION 2026 QUESTIONS WITH
ANSWERS GRADED A+
●● Perfect Competition: Firm Strategy.
Answer: Strategy is OPERATIONS focused
- A firm can increase profit by reducing its costs, shifting to a lower
point on the supply curve
- there is no return to market because the firms product cannot be
differentiated
●● Imperfect Competition.
Answer: firms sell imperfect substitutes (differentiated) products, and
charge different prices based on the firm's demand and the firm's MC
- produce at MR = MC (profit-maximizing output) (Socially
INEFFICENT)
- no supply curve, each firm operates on its own curve
- Firms have market power, Price Makers
- MR schedule has the same vertical intc as demand schedule but twice
the slope
- can charge a price higher than MC so MB>MC
●● Imperfect Competition: Firm Strategy.
,Answer: MARKETING-focused, can increase sales by winning more
customers, shifting the demand curve outward
●● Imperfect Competition: Max Profit.
Answer: MR = MC (maximizes producer surplus)
- lower Q than socially efficent
- higher P than socially efficent
●● Perfect Price Discrimination.
Answer: Occurs when a firm charges the maximum amount that buyers
are willing to pay for each unit.
- every customer pays individual marginal willingness to pay (MB)
- zero consumer surplus (all producer surplus) (net economic benefit of
zero)
- everyone who wants product gets it
- Firms have an incentive to produce at MC=MB so socially efficient
- EX: airlines, consulting
●● Imperfect Price Discrimination.
Answer: Groups of consumers are charged different prices
- based on discrete differences in willingness to pay
- consumers capture some surplus
- some customers left out (underproduction)
, - slight loss in SW, more socially efficient the more groups there are
- EX: college tuition, movie theater
●● Market Power.
Answer: 1). ability to compete/ differentiate yourself
2). ability for price discrimination
- market power when you are a price maker
●● Unilever Case: Company Background.
Answer: - owns a wide variety of grocery/drug store products
- obsessed with differentiation strategy
- saw a business opportunity in the growing skepticism in capitalism,
focused business model on sustainability, and sensitivity to (-)
externalities and social impact
●● Unilever Case: USLP stakeholder hierarchy.
Answer: 1. customer
2. society
3. employees
4. stockholders
●● Unilever Case: USLP stakeholder hierarchy benifits.
Answer: 1. customer : high willingness to pay, can charge higher price
EVALUATION 2026 QUESTIONS WITH
ANSWERS GRADED A+
●● Perfect Competition: Firm Strategy.
Answer: Strategy is OPERATIONS focused
- A firm can increase profit by reducing its costs, shifting to a lower
point on the supply curve
- there is no return to market because the firms product cannot be
differentiated
●● Imperfect Competition.
Answer: firms sell imperfect substitutes (differentiated) products, and
charge different prices based on the firm's demand and the firm's MC
- produce at MR = MC (profit-maximizing output) (Socially
INEFFICENT)
- no supply curve, each firm operates on its own curve
- Firms have market power, Price Makers
- MR schedule has the same vertical intc as demand schedule but twice
the slope
- can charge a price higher than MC so MB>MC
●● Imperfect Competition: Firm Strategy.
,Answer: MARKETING-focused, can increase sales by winning more
customers, shifting the demand curve outward
●● Imperfect Competition: Max Profit.
Answer: MR = MC (maximizes producer surplus)
- lower Q than socially efficent
- higher P than socially efficent
●● Perfect Price Discrimination.
Answer: Occurs when a firm charges the maximum amount that buyers
are willing to pay for each unit.
- every customer pays individual marginal willingness to pay (MB)
- zero consumer surplus (all producer surplus) (net economic benefit of
zero)
- everyone who wants product gets it
- Firms have an incentive to produce at MC=MB so socially efficient
- EX: airlines, consulting
●● Imperfect Price Discrimination.
Answer: Groups of consumers are charged different prices
- based on discrete differences in willingness to pay
- consumers capture some surplus
- some customers left out (underproduction)
, - slight loss in SW, more socially efficient the more groups there are
- EX: college tuition, movie theater
●● Market Power.
Answer: 1). ability to compete/ differentiate yourself
2). ability for price discrimination
- market power when you are a price maker
●● Unilever Case: Company Background.
Answer: - owns a wide variety of grocery/drug store products
- obsessed with differentiation strategy
- saw a business opportunity in the growing skepticism in capitalism,
focused business model on sustainability, and sensitivity to (-)
externalities and social impact
●● Unilever Case: USLP stakeholder hierarchy.
Answer: 1. customer
2. society
3. employees
4. stockholders
●● Unilever Case: USLP stakeholder hierarchy benifits.
Answer: 1. customer : high willingness to pay, can charge higher price
