G202 COMPREHENSIVE EXAM 2026 FULL
QUESTIONS AND CORRECT ANSWERS
◉ Monopoly. Answer: has 100% market power
◉ Market Power. Answer: can exist with multiple rival firms if products
are differentiated and/or markets are segmented
◉ Market Strategies. Answer: -guarding trade secrets
-control of an essential resource
-exclusive contracts and customer lock-in
-collusion
◉ Non Market Strategies. Answer: -patent or copyright protection
-trade regulations
-government licensing
-government or NGO certification
◉ Collusion. Answer: -where 2 firms get together and fix the price of a
product
-forms a cartel and acts as a monopoly
, -illegal in the US but not everywhere
-unstable because its illegal so contracts and promises cant be enforced
◉ Optimal Sales Target. Answer: occurs where marginal revenue equals
marginal cost
◉ MR>MC. Answer: the firm could make a profit by selling one more
unit
◉ MR<MC. Answer: the firm would lose money selling one more unit
◉ Optimal Price. Answer: found as a markup over cost, where the
markup factor depends on the demand for the product, given the optimal
sales target
◉ Qf. Answer: optimal firm sales volume
◉ Pf. Answer: optimal price for the firm
◉ Marginal Cost. Answer: supply curve
◉ Firm With Market Power. Answer: sets price higher and output lower
than efficient levels
QUESTIONS AND CORRECT ANSWERS
◉ Monopoly. Answer: has 100% market power
◉ Market Power. Answer: can exist with multiple rival firms if products
are differentiated and/or markets are segmented
◉ Market Strategies. Answer: -guarding trade secrets
-control of an essential resource
-exclusive contracts and customer lock-in
-collusion
◉ Non Market Strategies. Answer: -patent or copyright protection
-trade regulations
-government licensing
-government or NGO certification
◉ Collusion. Answer: -where 2 firms get together and fix the price of a
product
-forms a cartel and acts as a monopoly
, -illegal in the US but not everywhere
-unstable because its illegal so contracts and promises cant be enforced
◉ Optimal Sales Target. Answer: occurs where marginal revenue equals
marginal cost
◉ MR>MC. Answer: the firm could make a profit by selling one more
unit
◉ MR<MC. Answer: the firm would lose money selling one more unit
◉ Optimal Price. Answer: found as a markup over cost, where the
markup factor depends on the demand for the product, given the optimal
sales target
◉ Qf. Answer: optimal firm sales volume
◉ Pf. Answer: optimal price for the firm
◉ Marginal Cost. Answer: supply curve
◉ Firm With Market Power. Answer: sets price higher and output lower
than efficient levels
