Exam 15: Oligopoly

Table 15.2.7 -Refer to Table 15.2.7.Disney and Fox must decide when to release their next films.The revenues received by each studio depend in part on when the other studio releases its film.Each studio can release its film at Thanksgiving or at Christmas.The revenues received by each studio, in millions of dollars, are given in the payoff matrix above.Which of the following statements correctly describes Fox's strategy given what Disney's release choice may be?

A duopoly is

For a cartel to succeed,

Use the table below to answer the following questions. Table 15.2.2 -Table 15.2.2 gives the payoff matrix in terms of economic profit for firms A and B when there are two strategies facing each firm: (1)charge a low price, or (2)charge a high price.Refer to the nonrepeated game in the table.If both firms could successfully collude, what would be firm A's economic profit?

Use the information below to answer the following question. Fact 15.4.1 Apple conspired with five publishers to undercut Amazon's 90 percent share of the e-book market, which caused e-book prices to rise to $12.99 or $14.99 from the $9.99 that Amazon charged. -Refer to Fact 15.4.1.This conspiracy to raise prices violates the anti-combine law because

Table 15.2.10 -Refer to Table 15.2.10.Firm A and Firm B are the only producers of soap powder.They collude and agree to share the market equally.The payoff matrix shows the game they play.The equilibrium of the game is that Firm A ________ and Firm B ________.

In a duopoly game, we observe the following payouts.If the two firms collude they each make an economic profit of $50,000.If one firm cheats, then that firm makes an economic profit of $60,000 and the other incurs an economics loss of $10,000.If both firms cheat, then they both make zero economic profit.What is the Nash equilibrium?

In a repeated game, punishments that result in heavy damages are an incentive for players to adopt the strategies that result in a ________ equilibrium.

When a firm cooperates if the other cooperates, but plays the Nash equilibrium strategy forever if the other cheats, the strategy is a

Choose the statement below that is incorrect.

A Nash equilibrium occurs when

The price in a contestable market is similar to that in a perfectly competitive market because

Why might only a few firms dominate an oligopolistic industry?

All games share four common features.They are

Use the table below to answer the following questions. Table 15.2.4 -Refer to Table 15.2.4 The marketers of Budweiser Light beer and Miller Lite beer must decide whether or not to offer new advertising campaigns promoting their products.The payoffs in the table are the economic profit made by Bud and Miller.Which one of the following observations is correct?

Which one of the following characteristics applies to oligopolistic markets?

Prisoners' dilemma describes a case where

In the research and development game of chicken,

In a prisoners' dilemma game, which of the following strategies gives the best outcome for both prisoners?

An oligopoly is a market structure in which there