unit 6 micro i refuse to do bad

Can change the quantity produced and lower the average total cost

For a firm in monopolistic competition, selling costs

the equilibrium might not be the best solution for the parties involved.

Game theory reveals that

lowers; increases

If a duopoly has reached the monopoly outcome, a firm can increase its profit by if it and it alone ________ its price and ________ its production.

the competitive price and out put

If firms in an oligopolistic industry consistently cut their price to sell more output, what price and output will result?

increases; decreases; decreases

If one firm in a duopoly increases its production by one unit beyond the monopoly output, that firm's profit ________ , the other firm's profit ________ , and the total profit of the duopoly ________ .

few firms and barriers to entry

In an oligopoly, there are

HAS; DOES NOT HAVE

In the long run, a firm in monopolistic competition ________ excess capacity and a firm in perfect competition ________ excess capacity.

where price equals average total cost but average total cost is not at its minimum

In the long run, a firm in monopolistic competition will produce

better off confessing

In the prisoners' dilemma, each player is ________ regardless of the other player's actions.

a small number of firms compete

Oligopoly is a market structure in which

signal customers that its product is high quality

One reason a company advertises is to...

HHI (Herfindahl-Hirschman Index)

a way of measuring industry concentration, equal to the sum of the squares of market shares for all firms in the industry

true

Collusion results when a group of firms ii. act together to limit output, raise prices, and increase economic profits.

a natural duopoly

The efficient scale of one firm is 20 units and the average total cost at the efficient scale is $30. The quantity demanded in the market as a whole at $30 is 40 units. This market is

shows that prisoners are better off if they cooperate.

The prisoners' dilemma game

a natural oligopoly

There are two bookstores in a college town. If another bookstore opened, each of the stores would incur an economic loss. This bookstore market is

the firms are so few that they recognize their mutual independencies

To determine if a market is an oligopoly, we need to determine if

it also shifts leftward

When a monopolistically competitive firm's demand curve shifts leftward, what happens to its marginal revenue curve?

natural oligopoly

When economies of scale limit the number of firms in an industry to 3, there is a

25%

Which of the following four firm concentration ratios is consistent with monopolistic competition?

PRODUCT VARIETY

Which of the following is an advantage of monopolistic competition?

one firm's actions affect another firm's profit

Which of the following is found only in oligopoly?