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