Exam 10: Monopolistic Competition, Oligopoly, and Game Theory

Target executives believe that if they raise prices, then customers will switch to shopping at Walmart across the street. However, if they decrease their prices, then Walmart will respond by decreasing their own prices, with no customers switching from Walmart to Target. This scenario implies that

If an oligopolistic firm believes that its competitors would match a price decrease, but not match a price increase, its demand curve is

(Table) Based on the game table, where Delta's payoff is listed first, does the Nash equilibrium represent a prisoner's dilemma? Why or why not? JetBlue High Low Delta High 700,100 600,200 Low 550,70 500,80

Compared with a competitive market, a cartel as a whole will produce

Suppose a monopolistically competitive firm produces 20 units of output. At this level, ATC = 70, P = 50, MR = 30, and MC = 30. The firm is experiencing a loss of

In a cartel, when more than one firm cheats by producing more than the agreed-upon quota, the market price

Chess and tic-tac-toe are examples of