ECON 2302
an oligopoly is a market which
there are few sellers, each offering a product similar or identical to the products offered by other firms in the market
refer to figure 16-2 if the average total cost is $30 at the profit- maximizing quantity, then the firms maximizing profit is
$144
refer to figure 16-11, how much consumer surplus will be derived from the purchase of this product at the monopolistically competitive price
$250
refer to figure 16-2 in order to maximize profit the firm will charge a price of
$36
refer to figure 16-11, the profit for this firm is
%500
Referred to figure 17-11. Payoffs are listed in the order Albus Minerva serverus. what is the Nash equilibrium for the game
(2,1,1)
Referred to figure 17-5 the US is fearful of an attack by Soviet Russia (ussr) and is considering the deployment of troops to West Germany air freshener does attack US would have the option of a counterattack payoffs are listed in the order (us,ussr) what is the Nash equilibrium for the games
(2,3): US= Deploy, USSR= does not attack
Refer to table 17-18 these two firms agree to corroborate to maximize their joint profit The outcomes of the game will be
10 units of output for firm a and 10 units of output for firm b
Refer to table 17-18 the national equally room for this game is
12 units of output for firm a and 12 units of output for firm b
refer to figure 16-2 the firms profit-maximizing level of output is
24 units
When oligopolistic firms interact with one another each choose their best strategy given the strategies chosen by other firms in the market we have
A Nash equilibrium market
In the prisoners dilemma game self interest leads
All of the above are correct
A group of firms that in unison to maximize collect the profits it's called a
Cartel
A monopolistically competitive market is like a monopoly in that
Firms in both market structures that price above marginal cost
Referred to table 17-25. The dominant strategy
For both firms is to offer the discount
Referring to table 17-19 what is the Nash equilibrium of the price city game
Grocery store one: low price. grocery store number two: low price
Cartels in the United States are
Illegal
Refer to table 17-19. If grocery store 1 set a low price, what price should grocery store 2 set
Low price, $500
Refer to table 17-15 which of the following outcomes represent a Nash equilibrium in the game
Middle right
Game theory is necessary to understand what kinds of market
Oligopoly
A firm is a price taker
Only when it is perfectly competitive
The Sherman antitrust act
Restricted the ability of competitors to engage in cooperative agreements
In a game a dominant strategy is
The best strategy for a player to follow regardless of the strategies followed by other players
Referred to table 17-14 which of the following statements about this game is true
Up is a dominant strategy for a and right is A dominant strategy for B
Refer to table 17-14 which outcome is the Nash equilibrium in this game
Up right
Which of the following parts illustrates the two extreme examples of market structures
competition and monopoly
firms that spend the greatest percent of their revenue on advertising tend to be firms that
highly-differentiated consumer goods
one way in which monopolistic competition differs from oligopoly is that
in oligopoly markets there are only a few sellers
a monopolistic competitive industry is characterized by
many firms selling products that are similar but not identical
which of the following statements is not correct
monopolistic competition is similar to perfect competition because both market structures are characterized by free enrty
in which of the following market structures can firms earn economic profits in the long run
monopoly
refer to figure 16-11, the graph depicts a monopolistically competitive firm in the short-run. Which of the following explanations best describes the long run adjustment
more firms will enter this market, shifting this firm's demand curve to the left
a market is comprised of many firms as opposed to just one firm or a few firms
only when it is perfectly competitive or monopolistically competitive
refer to fugure 16-3, what is the profit maximizing price, quantity, and resulting profit
p=$80 q=20 units profit=$200
refer to figure 16-5, which of the graphs depicts a short-run equilibrium that will encourage the exit of some firms from a monopolistically competitive indusrty
panel b
refer to figure 16-5, which of the following graph depicts a short-run equilibrium that will encourage the entry of other firms into a monopolistically competitive industry
panel c
a firm operating in a monopolistically competitive market can earn positive total profits in
the sort run but not the long run
a firm in a monopolistic competitive market is similar to a monopoly in the sense that
they both face downward-sloping demand curves AND they both change a price that exceedes marginal cost
if we observe a great deal of advertising of men's shaving products, we can infer that
those products are highly differentiated
