Two local ready-mix cement manufacturers,Here and There,have combined demand given by Q = 105 - P.Their total costs are given by TCHere = 5QHere + 0.5Q2Here and TCThere = 5QThere + 0.5Q2There.If they successfully collude,their maximum joint profits will be:

A) $500. B) $1,000. C) $1,600. D) $2,000. E) $2,500. A) $500. B) $1,000. C) $1,600. D) $2,000. E) $2,500. D

Two local ready-mix cement manufacturers,Here and There,have combined demand given by Q = 105 - P.Their total costs are given by TCHere = 5QHere + 0.5Q2Here and TCThere = 5QThere + 0.5Q2There.If they cannot successfully collude and instead produce where the market price equals marginal cost,each firm's profits will be:

A) $111.11. B) $222.22. C) $333.33. D) $444.44. E) $555.55. A) $111.11. B) $222.22. C) $333.33. D) $444.44. E) $555.55.

A) the name for firms in any oligopoly market. B) a collusive organization. C) an oligopolist that competes with other oligopolists. D) a group of firms using price leadership. E) a group of firms using preemptive strategies. A) the name for firms in any oligopoly market. B) a collusive organization. C) an oligopolist that competes with other oligopolists. D) a group of firms using price leadership. E) a group of firms using preemptive strategies.

Exam 11: Oligopoly

Two local ready-mix cement manufacturers,Here and There,have combined demand given by Q = 105 - P.Their total costs are given by TC_Here = 5Q_Here + 0.5Q²_Here and TC_There = 5Q_There + 0.5Q²_There.If they successfully collude,their maximum joint profits will be:

Free

(Multiple Choice)

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Question 1

Correct Answer:

Verified

In the United States most cartels were declared illegal by the:

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(Multiple Choice)

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Question 2

Correct Answer:

Verified

Glyde Air Fresheners is the dominant firm in the solid room aromatizer industry,which has a total market demand given by Q = 80 - 2P.Glyde has competition from a fringe of four small firms that produce where their individual marginal costs equal the market price.The fringe firms each have total costs given by TC_i = 10Q_i + 2Q²_i.If Glyde's total costs are given by TC_G = 100 + 6Q_G,what are the total profits of the fringe firms?

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(Multiple Choice)

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Question 3

Correct Answer:

Verified

Sticky prices are an outcome of the kinked demand model because:

(Multiple Choice)

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Question 4

Duopolists A and B face the following demand curves: Q_A = 100 - 2P_A + 2P_B and Q_B = 100 - 2P_B + 2P_A.If both firms have zero marginal cost,what are the profit-maximizing prices and quantities?

(Multiple Choice)

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Question 5

The optimal output and price for the cartel shown in the accompanying diagram is:

(Multiple Choice)

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Question 6

Whopper Stoppers Inc.chooses a price for its sink stoppers,and other firms always charge the same price.Whopper Stoppers Inc.is:

(Multiple Choice)

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Question 7

If a cartel is working properly,its firms will likely be producing where (MC_i is each firm i's marginal cost,MR is market marginal revenue,and P is price):

(Multiple Choice)

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Question 8

Suppose duopolists in the market for spring water share a market demand curve given by P = 50 - 0.02Q,where P is the price per gallon and Q is thousands of gallons of water per day.The marginal cost of producing water is near zero for both firms.If firm A produces zero,firm B's best response is producing:

(Multiple Choice)

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Question 9

The kinked demand model assumes firms will:

(Multiple Choice)

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Question 10

Cartels can only exist:

(Multiple Choice)

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Question 11

Two local ready-mix cement manufacturers,Here and There,have combined demand given by Q = 105 - P.Their total costs are given by TC_Here = 5Q_Here + 0.5Q²_Here and TC_There = 5Q_There + 0.5Q²_There.If they cannot successfully collude and instead produce where the market price equals marginal cost,each firm's profits will be:

(Multiple Choice)

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Question 12

Glyde Air Fresheners is the dominant firm in the solid room aromatizer industry,which has a total market demand given by Q = 80 - 2P.Glyde has competition from a fringe of four small firms that produce where their individual marginal costs equal the market price.The fringe firms each have total costs given by TC_i = 10Q_i + 2Q²_i.If Glyde's total costs are given by TC_G = 100 + 6Q_G,what is Glyde's maximum profit?

(Multiple Choice)

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Question 13

Suppose duopolists in the market for spring water share a market demand curve given by P = 50 - 0.02Q,where P is the price per gallon and Q is thousands of gallons of water per day.The marginal cost of producing water is near zero for both firms.If one firm acts as a first mover,the second firm will produce:

(Multiple Choice)

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Question 14

While a cartel is holding together,its individual members' demand curves are likely to be:

(Multiple Choice)

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Question 15

What is the advantage to a particular firm of cheating on an otherwise effective cartel?

(Multiple Choice)

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Question 16

A cartel is:

(Multiple Choice)

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Question 17

Oligopoly is the only market structure in which one finds:

(Multiple Choice)

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Question 18

The price leadership strategy is most appropriate when a market is:

(Multiple Choice)

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Question 19

If the market described in the accompanying diagram is dominated by a cartel,the loss in total surplus relative to perfectly competitive market conditions will be:

(Multiple Choice)

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Question 20

Showing 1 - 20 of 41

Two local ready-mix cement manufacturers,Here and There,have combined demand given by Q = 105 - P.Their total costs are given by TC_Here = 5Q_Here + 0.5Q²_Here and TC_There = 5Q_There + 0.5Q²_There.If they successfully collude,their maximum joint profits will be:

In the United States most cartels were declared illegal by the:

Sticky prices are an outcome of the kinked demand model because:

Duopolists A and B face the following demand curves: Q_A = 100 - 2P_A + 2P_B and Q_B = 100 - 2P_B + 2P_A.If both firms have zero marginal cost,what are the profit-maximizing prices and quantities?

The optimal output and price for the cartel shown in the accompanying diagram is:

Whopper Stoppers Inc.chooses a price for its sink stoppers,and other firms always charge the same price.Whopper Stoppers Inc.is:

If a cartel is working properly,its firms will likely be producing where (MC_i is each firm i's marginal cost,MR is market marginal revenue,and P is price):

The kinked demand model assumes firms will:

Cartels can only exist:

While a cartel is holding together,its individual members' demand curves are likely to be:

What is the advantage to a particular firm of cheating on an otherwise effective cartel?

A cartel is:

Oligopoly is the only market structure in which one finds:

The price leadership strategy is most appropriate when a market is:

If the market described in the accompanying diagram is dominated by a cartel,the loss in total surplus relative to perfectly competitive market conditions will be:

Introduction

Demand Theory

Consumer Behavior and Rational Choice

Estimating Demand Functions

Production Theory

The Analysis of Costs

Perfect Competition

Monopoly and Monopolistic Competition

Managerial Use of Price Discrimination

Bundling and Intrafirm Pricing

Game Theory

Auctions

Risk Analysis

Principalagent Issues and Managerial Compensation

Adverse Selection

Government and Business

Optimization Techniques

Appendix Problems

Filters

Exam 11: Oligopoly

Two local ready-mix cement manufacturers,Here and There,have combined demand given by Q = 105 - P.Their total costs are given by TCHere = 5QHere + 0.5Q2Here and TCThere = 5QThere + 0.5Q2There.If they successfully collude,their maximum joint profits will be:

In the United States most cartels were declared illegal by the:

Sticky prices are an outcome of the kinked demand model because:

Duopolists A and B face the following demand curves: QA = 100 - 2PA + 2PB and QB = 100 - 2PB + 2PA.If both firms have zero marginal cost,what are the profit-maximizing prices and quantities?

The optimal output and price for the cartel shown in the accompanying diagram is:

Whopper Stoppers Inc.chooses a price for its sink stoppers,and other firms always charge the same price.Whopper Stoppers Inc.is:

If a cartel is working properly,its firms will likely be producing where (MCi is each firm i's marginal cost,MR is market marginal revenue,and P is price):

The kinked demand model assumes firms will:

Cartels can only exist:

While a cartel is holding together,its individual members' demand curves are likely to be:

What is the advantage to a particular firm of cheating on an otherwise effective cartel?

A cartel is:

Oligopoly is the only market structure in which one finds:

The price leadership strategy is most appropriate when a market is:

If the market described in the accompanying diagram is dominated by a cartel,the loss in total surplus relative to perfectly competitive market conditions will be:

Introduction

Demand Theory

Consumer Behavior and Rational Choice

Estimating Demand Functions

Production Theory

The Analysis of Costs

Perfect Competition

Monopoly and Monopolistic Competition

Managerial Use of Price Discrimination

Bundling and Intrafirm Pricing

Game Theory

Auctions

Risk Analysis

Principalagent Issues and Managerial Compensation

Adverse Selection

Government and Business

Optimization Techniques

Appendix Problems

Filters

Two local ready-mix cement manufacturers,Here and There,have combined demand given by Q = 105 - P.Their total costs are given by TC_Here = 5Q_Here + 0.5Q²_Here and TC_There = 5Q_There + 0.5Q²_There.If they successfully collude,their maximum joint profits will be:

Duopolists A and B face the following demand curves: Q_A = 100 - 2P_A + 2P_B and Q_B = 100 - 2P_B + 2P_A.If both firms have zero marginal cost,what are the profit-maximizing prices and quantities?

If a cartel is working properly,its firms will likely be producing where (MC_i is each firm i's marginal cost,MR is market marginal revenue,and P is price):