Exam 11: Oligopoly and Monopolistic Competition

The market demand that is NOT met by other sellers in a market is known as a firm's

When deciding on output levels, members of a cartel

The Bertrand model of price setting assumes that a firm chooses its price

In the Cournot model, if one firm increases its output

In the Cournot model, if the products are differentiated

When the market demand curve is relatively inelastic,

Suppose the demand for pizza in a small isolated town is p = 10 - Q. There are only two firms, A and B, and each has a cost function TC = 2 + q. Determine the Cournot equilibrium.

Television stations have seemingly synchronized their commercial breaks. This is likely an example of

A product can be differentiated through

In a Bertrand model with identical products,

-The above figure shows the reaction functions for two pizza shops in a small isolated town. The perfect competitive outcome is that

A cartel is a group of firms that attempts to

In the simplest version of the Cournot model, we assume the firms

Which of the following is a current example of a government-granted cartel?

A typical firm in a cartel will hold which of the following attitudes?

In the Cournot model

In the long run, firms in markets that are ________ earn zero economic profits.

An example of a market where a Bertrand model would be NOT be plausible is the market for

A merger between two firms that produce identical goods would be called

If a firm is selling a quantity that is NOT on its best-response curve, it