A. monopolistic competition
B. Competitively monopolistic
C. Duopoly
D. Oligopoly
Oligopoly
In the kinked Demand Curve theory it is assumed that ?
A. An increase in price by the firm is not followed by others
B. An increase in price by the firm is followed by others
C. A decrease in price by the firm is followed by others
D. Firms collude to fix the price
In Game Theory ?
A. Firms are assumed to act independently
B. Firms are assumed to cooperate with each other
C. Firms collude as part of cartel
D. Firms consider the actions of others before deciding what to do
Firms in oligopoly are likely to ?
A. Invest heavily in branding
B. Act independently of other firms
C. Try to differentiate its products
D. Try to be a price maker
In cartels ?
A. Each individual firm profit maximizes
B. There may be an incentive to cheat
C. The industry as a whole is loss making
D. There is no need to police agreements
The market for hand tools (such as hammers and screwdrivers) is dominated by Draper Stanley, and Craftsman This market is best described as ?
A. monopolistically competitive
B. a monopoly
C. an oligopoly
D. competitive
If oligopolists engage in collusion and successfully from a cartel, the market outcome is ?
A. the same as if it were served by competitive firms.
B. efficient because cooperation improves efficiency
C. the same as if it were served by a monopoly.
D. known as a Nash equilibrium
As the number of sellers in an oligopoly grows larger, an oligopolistic market looks more like ?
A. monopoly
B. a competitive market
C. monopolistic competition
D. a collusion solution
When a oligopolist individually chooses its level of production to maximize its profits it charges a price that is ?
A. more than the price charged by either monopoly or a competitive market
B. less than the price charged by either monopoly or a competitive market
C. more than the price charged by a monopoly and less then the price charged by a competitive market
D. less than the price charged by a monopoly and more than the price charged by a competitive market
A situation in which oligopolists interacting with one another each choose their best strategy given the strategies that all the other oligopolists have chosen is known as a ?
A. Nash equilibrium
B. dominant strategy.
C. cartel
D. collusion solution