Exam 10: Monopolistic Competition, Oligopoly, and Game Theory

If an industry consisting of two firms produces a total of 12 units, the market price is $10. If 13 units are produced, the price falls to $9. Suppose the two firms form a cartel and agree to produce 6 units each. If one firm cheats and produces 7 units, the cheating firm's revenue rises by _ and the noncheating firm's revenue falls by _.

(Multiple Choice)

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Question 161

The kinked demand curve model assumes that if a firm raises its price, then its rivals will _ the price increase, but if a firm lowers its price, its rivals will _ the price decrease.

(Multiple Choice)

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Question 162

In the past, successful brands have been named after all of these EXCEPT the

(Multiple Choice)

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Question 163

Both oligopolies and monopolies are allocative efficient.

(True/False)

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Question 164

Which statement is TRUE for a monopolistically competitive firm operating in the long run?

(Multiple Choice)

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Question 165

When firms in a market offer to "match any lower price offered by any competitor" but do not match price increases, then

(Multiple Choice)

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Question 166

Which of these is a characteristic shared by both oligopolies and monopolies?

(Multiple Choice)

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Question 167

Suppose a monopolistically competitive firm produces 20 units of output. At this level of output, ATC = 35, P = 50, MR = 30, and MC = 30. The firm's economic profit is

(Multiple Choice)

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Question 168

Which of these is NOT part of the basic setup of a game?

(Multiple Choice)

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Question 169

An assumption underlying the Nash equilibrium is that players in a game try to predict what the other players would do and then choose a strategy based on that prediction.

(True/False)

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Question 170

Both oligopolies and monopolies are productive efficient.

(True/False)

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Question 171

If Nintendo lowers the price of its product by $10, Sony responds by lowering the price of its own product by $10 and chooses not to cooperate again. This is an example of what type of game strategy?

(Multiple Choice)

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Question 172

If an oligopolist faces a kinked demand curve, then the price

(Multiple Choice)

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Question 173

Which of these is NOT a component of a game theory "game"?

(Multiple Choice)

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Question 174

In the following game table, a dominant strategy exists for which player(s)?

(Multiple Choice)

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Question 175

Trigger strategies are actions taken that are contingent on your opponent's future decisions.

(True/False)

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Question 176

Which statement provides the BEST example of a grim trigger rule?

(Multiple Choice)

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Question 177

Monopolistically competitive firms resemble monopolies in that both produce at a lower quantity than a perfectly competitive firm.

(True/False)

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Question 178

(Table) Suppose you and your best friend are each deciding whether to spend the weekend in Key West or to stay home and study for next week's exam. The payoffs for each of the four possible outcomes are shown in the table (where higher numbers are better and the first number in each box represents your payoff, while the second number represents your friend's payoff). Which of these scenarios is the Nash equilibrium? Friend You Travel Study Travel 85,60 75,70 Study 80,50 70,80

(Multiple Choice)

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Question 179

Which of these is a type of strategy used in a repeated game?

(Multiple Choice)

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Question 180

Showing 161 - 180 of 307

The kinked demand curve model assumes that if a firm raises its price, then its rivals will _ the price increase, but if a firm lowers its price, its rivals will _ the price decrease.

In the past, successful brands have been named after all of these EXCEPT the

Both oligopolies and monopolies are allocative efficient.

Which statement is TRUE for a monopolistically competitive firm operating in the long run?

When firms in a market offer to "match any lower price offered by any competitor" but do not match price increases, then

Which of these is a characteristic shared by both oligopolies and monopolies?

Suppose a monopolistically competitive firm produces 20 units of output. At this level of output, ATC = 35, P = 50, MR = 30, and MC = 30. The firm's economic profit is

Which of these is NOT part of the basic setup of a game?

An assumption underlying the Nash equilibrium is that players in a game try to predict what the other players would do and then choose a strategy based on that prediction.

Both oligopolies and monopolies are productive efficient.

If Nintendo lowers the price of its product by $10, Sony responds by lowering the price of its own product by $10 and chooses not to cooperate again. This is an example of what type of game strategy?

If an oligopolist faces a kinked demand curve, then the price

Which of these is NOT a component of a game theory "game"?

In the following game table, a dominant strategy exists for which player(s)?

Trigger strategies are actions taken that are contingent on your opponent's future decisions.

Which statement provides the BEST example of a grim trigger rule?

Monopolistically competitive firms resemble monopolies in that both produce at a lower quantity than a perfectly competitive firm.

Which of these is a type of strategy used in a repeated game?

Exploring Economics

Production, Economic Growth, and Trade

Supply and Demand

Markets and Government

Elasticity

Consumer Choice and Demand

Production and Costs

Perfect Competition

Monopoly

The Labor Market

Land, Capital Markets, and Innovation

Externalities and Public Goods

Network Goods

Poverty and Income Distribution

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Exam 10: Monopolistic Competition, Oligopoly, and Game Theory

The kinked demand curve model assumes that if a firm raises its price, then its rivals will _____ the price increase, but if a firm lowers its price, its rivals will _____ the price decrease.

In the past, successful brands have been named after all of these EXCEPT the

Both oligopolies and monopolies are allocative efficient.

Which statement is TRUE for a monopolistically competitive firm operating in the long run?

When firms in a market offer to "match any lower price offered by any competitor" but do not match price increases, then

Which of these is a characteristic shared by both oligopolies and monopolies?

Suppose a monopolistically competitive firm produces 20 units of output. At this level of output, ATC = 35, P = 50, MR = 30, and MC = 30. The firm's economic profit is

Which of these is NOT part of the basic setup of a game?

An assumption underlying the Nash equilibrium is that players in a game try to predict what the other players would do and then choose a strategy based on that prediction.

Both oligopolies and monopolies are productive efficient.

If Nintendo lowers the price of its product by $10, Sony responds by lowering the price of its own product by $10 and chooses not to cooperate again. This is an example of what type of game strategy?

If an oligopolist faces a kinked demand curve, then the price

Which of these is NOT a component of a game theory "game"?

In the following game table, a dominant strategy exists for which player(s)?

Trigger strategies are actions taken that are contingent on your opponent's future decisions.

Which statement provides the BEST example of a grim trigger rule?

Monopolistically competitive firms resemble monopolies in that both produce at a lower quantity than a perfectly competitive firm.

Which of these is a type of strategy used in a repeated game?

Exploring Economics

Production, Economic Growth, and Trade

Supply and Demand

Markets and Government

Elasticity

Consumer Choice and Demand

Production and Costs

Perfect Competition

Monopoly

The Labor Market

Land, Capital Markets, and Innovation

Externalities and Public Goods

Network Goods

Poverty and Income Distribution

International Trade

Filters

The kinked demand curve model assumes that if a firm raises its price, then its rivals will _ the price increase, but if a firm lowers its price, its rivals will _ the price decrease.