Exam 10: Monopolistic Competition, Oligopoly, and Game Theory

A firm will have a "kinked" demand curve if its decision to raise prices is _____ matched by competitors, whereas its decision to lower prices is _____ matched by competitors.

Both oligopolies and monopolies can charge a price in the long run that is higher than the average total cost.

The trembling hand trigger game

The best-response method assumes that each player will

Assume that a monopolistically competitive firm faces the following situation: P = $26; output = 13,000 units; MC = $16; ATC = $22; AVC = $15; and MR = $17. Which statement BEST describes the firm's situation?

Which characteristic of an oligopoly firm is MOST similar to a monopoly?

Explain the following statement: "Competition within an oligopoly is personal."

In the reusable water bottle industry, these are all attempts at product differentiation EXCEPT

The demand curve faced by a firm in monopolistic competition is

The prisoner's dilemma game may be applicable to criminal prosecution when more than one criminal is involved.

Jessie and Sammy are playing a game in which each has two choices. Based on the following game table (where Jessie's payoffs are listed first in each outcome), who has a dominant strategy?

Product differentiation can be achieved through all of these EXCEPT

Monopolies and monopolistic competitors are similar in that they both face inelastic demand curves.

In the prisoner's dilemma

Both monopolistically competitive and perfectly competitive firms

Game theory assumes that firms make decisions independently of one another.

Which of these is NOT an example of product differentiation?

Which statement about cartels is TRUE?

Game theory

Firms in _____ markets have a more difficult time applying the profit-maximization rule than firms in other markets because _____.