Exam 18: Oligopoly

-The table above shows the payoff matrix offered to two suspected criminals,Bonnie and Clyde.The payoffs are the years they will spend in prison.The suspected criminals are not allowed to communicate.Given the information in the payoff matrix,the Nash equilibrium is

-The above figure shows the market demand curve for long-distance land-based telephone calls.Suppose the marginal cost of a long-distance telephone call is 2¢ a minute for a call no matter how many minutes of calls are made and there are 3 firms in the industry.If the firms in the industry operate as a monopoly,there are ________ minutes of calls made per hour.

If two duopolists can stick to a cartel agreement to boost their prices,then both

A market with only two firms is called a

-The table above shows the payoff matrix offered to two suspected criminals,Bonnie and Clyde.The payoffs are the years they will spend in prison.The suspected criminals are not allowed to communicate.Given the information in the payoff matrix,the Nash equilibrium is that Bonnie ________ and Clyde ________.

What is the best outcome for society: When firms in an oligopoly operate as a monopoly or when they act as perfect competitors? Briefly explain your answer.

If the HHI for an industry equals 3,200,

Which of the following statements is correct?

________ is an agreement between a manufacturer and a distributor on the price at which a product will be resold.

One way to identify oligopoly is to

-The figure above shows a the market demand curve for a market with three firms.It also shows a firm's marginal cost curve.In this oligopoly,what is the range of output and prices? Why does this range of outcomes exist?

Suppose two companies,Sony and Magnavox,are competing in a duopoly.If both companies charge a high price,they each make $700 million in economic profit.If both companies charge a low price,they each make $500 million in economic profit.If one company charges a high price and the other a low price,the company charging the higher price makes $450 million in economic profit and the company charging the lower price makes $800 million in economic profit. a.Complete the payoff matrix below for Sony and Magnavox. b.Find the Nash equilibrium.

The figure above shows the market for airplanes. -Suppose the airplane market is an oligopoly.According to the figure above,the quantity produced can range as high as ________ planes per week and as low as ________ planes per week.

According to Section 2 of the Sherman Act,which of the following is a felony?

-Suppose Intel and AMD can each charge either $300 or $200 for a CPU (the computing unit of a computer).The above table illustrates the payoffs,in millions of dollars,from each of the four possible outcomes that could occur in their duopoly setting.If Intel charges $300 and AMD charges $300,then Intel's profit will be ________ million and AMD's profit will be ________ million.

-In the above figure,the output of an oligopoly will range between

Why do oligopoly firms find it difficult to cooperate and not cheat on a cartel agreement?

-The figure above shows the market demand curve and the ATC curve for a firm.If all firms in the market have the same ATC curve,the lowest price at which a firm could stay in business in the long run is ________ per unit and the quantity demanded in the market at that price is ________ units per hour.

Which of the following is an example of a tying arrangement?

In 1911,Standard Oil Co.was declared a monopoly by the government under the Sherman Act and the company was ordered to break itself up into competing companies.Two oil companies,Exxon and Mobil,were the result of this breakup.A few years ago,Exxon and Mobil merged again to form ExxonMobil Corporation.Why did the government allow this merger now?