Exam 5: Competitors and Competition

Based on Bresnahan and Reiss' study of the relationship between concentration and prices,how many firms did they determine generally need to be in a market for price competition to be as intense as it would likely get?

What kind of competition is generally described as quantity competition?

Suppose two hot dog stands,Al's & Bob's,position themselves at different ends of a 1000 yard stretch of beach.Assume there are 100 beach goers evenly distributed along the stretch of beach and travel costs are $.01 per yard.If Al charges $1 for his hot dogs and Bob charges $2 for his hot dogs,what is the cost of purchasing a hot dog from each stand for a hungry beachgoer situated at a position D yards from Al's end of the beach? How many consumers will go to Al's and how many will go to Bob's?

What term does Sutton use to describe the costs of establishing a credible brand?

Which of the following is the definition of "competitors?"

In a two firm market,let the marginal cost of producing a product be $20 and the market demand for their products be given by Q₁=12-P₁+P₂ and Q₂=12-P₂+P₁.What is the Bertrand equilibrium price each firm would produce in this market?

What kind of competition is generally described as price competition?

What term describes a firm that faces little or no competition in one of its input markets?

Which of the following is a reason other than concentration that price-cost margins may vary across industries?

In what type of market structure to sellers set identical prices and are prices generally driven down to marginal costs?

Which of the following market structures generally has a Herfindahl index at .6 and above (usually having light competition,unless threatened by entry)?

Of the following industries listed,which one is generally thought of as having the highest search costs?

What is the term for examining consumers travel patterns? a) Flow analysis b) Travel analysis c) Purchase location analysis d) Consumer distance analysis e) None of the above

What is a catchment area?

What group/type of preferences describes when tastes differ markedly from one person to the next and result in horizontal differentiation?

What is defined by the number and size distribution of the firms in a market?

What criterion developed by the DOJ is used to identify all potential competitors within the market?

The causal connection between firms is known as the:

Which of the following is not a characteristic of substitute products X and Y?

In what type of market do the actions of individual firms materially affect the overall market?