Exam 14: Oligopoly

Cartels are more successful when members play by the rules and the industry faces an inelastic demand.

A maximin strategy will maximize the maximum payoff that can be earned.

Which of the following is NOT an assumption of the Cournot model presented in the text?

Oligopolists must ________ to their strategy in order to determine their optimal strategy.

Refer to the information provided in Table 14.3 below to answer the question that follows. Table 14.3 B's Strategy Advertise Don't Advertise A's profit \ 200 million A's profit \ 75 million A's Strategy Advertise B's profit \ 75 million B's profit \ 50 million Don't A's profit \ 50 million A's profit \ 100 million B's profit \ 200 B's profit \ 100 Advertise million million -Refer to Table 14.3. Firm A?s dominant strategy is

Products may be homogeneous or differentiated in the ________ market structure.

Refer to the information provided in Table 14.1 below to answer the question that follows. Table 14.1 B's Strategy Raise Price Don't Raise Price Raise A's profit \ 3,000 A's profit \ 10,000 Price B's profit \ 3,000 B's profit \ 15,000 A's Strategy Don't A's profit \ 15,000 A's profit \ 5,000 Raise B's profit \ 10,000 B's profit \ 5,000 -Refer to Table 14.1. If both firms follow a maximin strategy, the equilibrium in the game is ________.

The prisoner's dilemma game presented in the text involves ________ players each with ________ strategies.

What is the maximum value the HHI can take on?

In the Cournot model, each firm's ________ shows the firm's optimal, profit-maximizing output given its rival's output.

________ occurs when a large, powerful firm drives smaller firms out of the market by temporarily selling at an artificially low price.

Which model of oligopoly results in the greatest efficiency?

Refer to the information provided in Table 14.3 below to answer the question that follows. Table 14.3 B's Strategy Advertise Don't Advertise A's profit \ 200 million A's profit \ 75 million A's Strategy Advertise B's profit \ 75 million B's profit \ 50 million Don't A's profit \ 50 million A's profit \ 100 million B's profit \ 200 B's profit \ 100 Advertise million million -Refer to Table 14.3. If both firms follow a maximin strategy, the equilibrium in the game is ________.

Economists no longer attack industry concentration with the same fervor they once did because

In the Cournot model the final level of output falls between the output that would prevail if the market were ________ and the output that would be set by a ________.

If the Herfindahl-Hirschman Index of an industry is less than 1,000, then the Antitrust Division of the Justice Department

Industry A has two firms that each control 50 percent of the market. Industry B has three firms, where one firm controls 70 percent of the market and the other two firms control 15 percent of the market each. According to the HHI, which industry is more concentrated?

Refer to the information provided in Table 14.1 below to answer the question that follows. Table 14.1 B's Strategy Raise Price Don't Raise Price Raise A's profit \ 3,000 A's profit \ 10,000 Price B's profit \ 3,000 B's profit \ 15,000 A's Strategy Don't A's profit \ 15,000 A's profit \ 5,000 Raise B's profit \ 10,000 B's profit \ 5,000 -Refer to Table 14.1. Firm A?s optimal strategy is

A(n) ________ industry has a single, unique product and blocked entry.

________ is a repeated game strategy in which a player responds in kind to an opponent's play.