Exam 11: Oligopoly and Monopolistic Competition

-The above figure shows the reaction functions for two pizza shops in a small isolated town. The Cournot equilibrium is at point

The use of "most-favored-customer" clauses is an example of

Monopolistically competitive firms face downward sloping residual demand curves because these firms

In a Bertrand model with identical products

-The above figure shows the reaction functions for two pizza shops in a small isolated town. The perfect competitive outcome is that

Assuming a homogeneous product, the Bertrand equilibrium price is

A cartel is a group of firms that attempts to

Minimum efficient scale refers to the lowest level of output at which

The Cournot model assumes that firm A maximizes its profit, holding firm B's output constant.

If differentiation makes the market demand curve less elastic, then

One criticism of the Bertrand pricing model is that

Television stations have seemingly synchronized their commercial breaks. This is likely an example of

In the simplest version of the Cournot model, we assume the firms

If a firm is selling a quantity that is NOT on its best-response curve it

The market demand that is NOT met by other sellers in a market is known as a firm's

A product can be differentiated through

In the Cournot model, the output that a firm chooses to produce increases as

In the simplest version of the Cournot model, we assume

In the simplest version of the Cournot model, we assume the firms

In the simplest version of the Cournot model, we assume