Exam 15: Oligopoly

Refer to the table below to answer the following question. Table 15.2.6 Firm A R\&D No R\&D A: \ 25 A: -\ 3 R\&D B: \ 15 B: \ 60 Firm B A: \ 60 A: \ 50 No R\&D B:-\ 3 B: \ 35 -Refer to Table 15.2.6.Firms A and B can conduct research and development (R&D)or not conduct it.R&D is costly but can increase the quality of the product and increase sales.The payoff matrix is the economic profits of the two firms and is given above,where the numbers are millions of dollars.A's best strategy is to

Consider a cartel consisting of several firms that is maximizing total profit.If one firm cheats on the cartel agreement by cutting its price and increasing its output,the best response of the other firms is to

Which of the following statements is TRUE about contestable markets?

Which one of the following characteristics applies to oligopolistic markets?

A dominant strategy equilibrium occurs when

A contestable market is similar to a perfectly competitive market in that there

The Competition Act distinguishes between business practices that are criminal and noncriminal.Which of the following are criminal practices?

In a contestable market the Herfindahl-Hirschman Index is ________ and the market behaves as if it is ________.

Limit pricing is the practice of

Complete the following sentence.A duopoly is

Refer to the table below to answer the following questions. Table 15.2.7 Disney Thanksgiving Christmas Release Release Thanksgiving D: \ 100 D: \ 105 Release F: \ 80 F: \ 95 Fox Christmas D: \ 110 D: \ 95 Release F: \ 100 F: \ 85 -Refer to Table 15.2.7.Disney and Fox must decide when to release their next films.The revenues received by each studio depends in part on when the other studio releases its film.Each studio can release its film at Thanksgiving or at Christmas.The revenues received by each studio,in millions of dollars,are given in the payoff matrix above.Which of the following statements correctly describes Disney's strategy given what Fox's release choice may be?

Which one the following industries is the best example of an oligopoly?

Use the table below to answer the following question. Table 15.2.3 Store X Lower Don't Lower Prices Prices Lower X:\ 5 X:\ 1 Prices Y:\ 5 Y:\ 10 Store Y Don't Lower X:\ 10 X:\ 20 Prices Y:\ 1 Y:\ 20 -Refer to Table 15.2.3.Store X and Store Y must decide whether or not to lower their prices.The table gives the economic profit made by Store X and Store Y.Which one of the following observations is correct?

Anti-combine law attempts to

A merger is unlikely to be approved if ________.

Use the table below to answer the following questions. Table 15.2.4 Bud Light Offer Don't Offer New Ads New Ads Offer B: \ 100 B: \ 50 Miller Lite New Ads M: \ 100 M: \ 200 Don't Offer B: \ 200 B: \ 120 New Ads M: \ 50 M: \ 120 -Refer to Table 15.2.4.The marketers of Budweiser Light beer and Miller Lite beer must decide whether or not to offer new advertising campaigns promoting their products.The payoffs in the table are the economic profit made by Bud and Miller.Which one of the following observations is correct?

Choose the statement below that is incorrect.

Which is not a characteristic of oligopoly?

Refer to the table below to answer the following questions. Table 15.2.8 Dr. Smith Advertise Don't Advertise J: \ 80 S: \ 60 Advertise J: \7 0 J: \1 10 Dr. Jones Don't S: \ 120 S: \ 100 Advertise J: \ 60 J: \ 90 -Refer to Table 15.2.8.Libertyville has two optometrists,Dr.Smith and Dr.Jones.Each optometrist can choose to advertise his service or not.The incomes of each optometrist,in thousands of dollars,are given in the payoff matrix above.Which of the following statements correctly describes Dr.Jones' strategy given what Dr.Smith may do?

Canada's anti-combine law dates back to the