Econ Chapter 17 Final Exam
Refer to Table 17-6. If both stores follow a dominant strategy, HomeMax's annual profit will grow by
$1.5 million
Which of the following examples illustrates an oligopoly market?
A city with two firms who are licensed to sell school uniforms for the local schools
Refer to Table 17-9. What is the Nash Equilibrium in this dorm room cleaning game?
Malik: Don't Clean Luis: Don't Clean
Assume that Samorola has entered into an enforceable resale price maintenance agreement with Trint and U-Mobile. Which of the following will always be true?
U-Mobile and Trint will always sell Samorolas for exactly the same price.
Suppose that Zion and Haidy are duopolists in the music industry. In June, they agree to work together as a monopolist, charging the monopoly price for their music and producing the monopoly quantity of songs. By July, each singer is considering breaking the agreement. What would you expect to happen next?
Zion and Haidy will each break the agreement. Both singers' profits will decrease.
Juan Pablo and Zak are competitors in a local market. Each is trying to decide if it is better to advertise on TV, on radio, or not at all. If they both advertise on TV, each will earn a profit of $8,000. If they both advertise on radio, each will earn a profit of $14,000. If neither advertises at all, each will earn a profit of $20,000. If one advertises on TV and other advertises on radio, then the one advertising on TV will earn $12,000 and the other will earn $10,000. If one advertises on TV and the other does not advertise, then the one advertising on TV will earn $22,000 and the other will earn $4,000. If one advertises on radio and the other does not advertise, then the one advertising on radio will earn $24,000 and the other will earn $8,000. If both follow their dominant strategy, then Juan Pablo will
advertise on radio and earn $14,000.
Refer to Table 17-6. Pursuing its own best interest, Lopes will
increase the size of its store and parking lot regardless of the decision made by HomeMax.
Refer to Table 17-6. Pursuing its own best interest, HomeMax will
increase the size of its store and parking lot regardless of the decision made by Lopes.
Refer to Table 17-8. If player B chooses Right, player A should choose
middle and earn a payoff of 5
Refer to Table 17-8. Which of the following statements regarding this game is true?
neither player has a dominant strategy
Refer to Table 17-9. If Luis chooses to clean, then Malik will
not clean and Luis's payoff will be 40
If duopoly firms that are not colluding were able to successfully collude, then
price would rise and quantity would fall
Refer to Table 17-6. Suppose the owners of Lopes and HomeMax meet for a friendly game of golf one afternoon and happen to discuss a strategy to optimize growth related profit. They should both agree to
refrain from increasing their store and parking lot sizes
A central issue in the Microsoft antitrust lawsuit involved Microsoft's integration of its Internet browser into its Windows operating system, to be sold as one unit. This practice is known as
tying
Whenever a cartel in a duopoly breaks down,
total output in the market will rise.
Refer to Table 17-6. Suppose the owners of Lopes and HomeMax meet for a friendly game of golf one afternoon and happen to discuss a strategy to optimize growth-related profit. If they both agree to cooperate on a strategy that maximizes their joint profits, annual profit will grow by
$2.0 million for Lopes and by $2.5 million for HomeMax.
policy makers use what to prevent oligopolies
antitrust laws