Micro chapter 13
the term oligopoly indicates
a few firms producing either a differentiated or a homogenous product
in the short run, a profit-maximizing monopolistically competitive firm sets it price
above marginal cost
nonprice competition refers to
advertising, product promotion, and changes in the real or perceived characteristics of a product
the kinked-demand curve of an oligopolist is based on the assumption that
competitors will follow a price cut but ignore a price increase
which of the following statements is true
games with a known ending date undermine reciprocity strategies
game theory
is the analysis of how people (or firms) behave in strategic situations
a monopolistically competitive firm in the short run is producing where price is $3 and marginal cost is $1.50. To maximize profits:
it is unclear what the firm should do without knowing marginal revenue
in a duopoly, if one firm increases its price, then the other firm can:
keep its price constant and thus increase its market share
if oligopolistic firms facing similar cost and demand conditions successfully collude, price and output results in this industry will be most accurately predicted by which of the following models
the pure monopoly model
in the long run, new firms will enter a monopolistically competitive industry
until economic profits are zero