Question 1

A weakness of the kinked demand curve model of oligopoly is

Accepted Answer

A) that marginal costs are frequently changing. 
B) it assumes that firms are reluctant to change prices. 
C) the marginal revenue curve is kinked at the market price. 
D) it does not explain how prices are determined. 
A) that marginal costs are frequently changing. 
B) it assumes that firms are reluctant to change prices. 
C) the marginal revenue curve is kinked at the market price. 
D) it does not explain how prices are determined.

Question 2

If economies of scale are significant, the typical firm will not reach the minimum point on its long-run average cost curve until it has produced a large fraction of industry sales.

Accepted Answer

A) True 
 B)False

Question 3

One reason why, in the last four decades, the number of new automakers in the world has been very small compared to the past is that

Accepted Answer

A) the automobile cannot be improved upon in any way by new producers. 
B) new auto makers cannot obtain necessary inputs to produce new cars. 
C) governments restrict who can produce automobiles. 
D) new producers cannot match the economies of scale of existing auto makers. 
A) the automobile cannot be improved upon in any way by new producers. 
B) new auto makers cannot obtain necessary inputs to produce new cars. 
C) governments restrict who can produce automobiles. 
D) new producers cannot match the economies of scale of existing auto makers.

Question 4

The study of how people make decisions in situations where attaining their goals depends on their interactions with others is called

Accepted Answer

A) Nash equilibrium. 
B) the prisoner's dilemma. 
C) game theory. 
D) dominant strategy equilibrium. 
A) Nash equilibrium. 
B) the prisoner's dilemma. 
C) game theory. 
D) dominant strategy equilibrium.

Question 5

An equilibrium in which each player chooses its best strategy given the strategies chosen by the other players is called a Nash equilibrium.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is true in an oligopoly market?

Accepted Answer

A) The pricing decisions of all other firms have no effect on an individual firm. 
B) Individual firms pay no attention to the behaviour of other firms. 
C) Advertising of one firm has no effect on all other firms. 
D) One firm's pricing decision affects all the other firms. 
A) The pricing decisions of all other firms have no effect on an individual firm. 
B) Individual firms pay no attention to the behaviour of other firms. 
C) Advertising of one firm has no effect on all other firms. 
D) One firm's pricing decision affects all the other firms.

A weakness of the kinked demand curve model of oligopoly is

If economies of scale are significant, the typical firm will not reach the minimum point on its long-run average cost curve until it has produced a large fraction of industry sales.

One reason why, in the last four decades, the number of new automakers in the world has been very small compared to the past is that

The study of how people make decisions in situations where attaining their goals depends on their interactions with others is called

An equilibrium in which each player chooses its best strategy given the strategies chosen by the other players is called a Nash equilibrium.

Which of the following is true in an oligopoly market?

Economics: Foundations and Models

Choices and Trade-Offs in the Market

Where Prices Come From: The Interaction of Demand and Supply

Elasticity: The Responsiveness of Demand and Supply

Economic Efficiency, Government Price Setting and Taxes

Consumer Choice and Behavioural Economics

Technology Production and Costs

Firms in Perfectly Competitive Markets

Monopoly Markets

Monopolistic Competition: The Competitive Model in a More Realistic

The Markets for Labour and Other Factors of Production

Comparative Advantage and the Gains From International Trade

Government Intervention in the Market

Externalities, Environmental Policy and Public Goods

The Distribution of Income and Social Policy

Filters

Exam 11: Oligopoly: Markets With Few Competitors

A weakness of the kinked demand curve model of oligopoly is

If economies of scale are significant, the typical firm will not reach the minimum point on its long-run average cost curve until it has produced a large fraction of industry sales.

One reason why, in the last four decades, the number of new automakers in the world has been very small compared to the past is that

The study of how people make decisions in situations where attaining their goals depends on their interactions with others is called

An equilibrium in which each player chooses its best strategy given the strategies chosen by the other players is called a Nash equilibrium.

Which of the following is true in an oligopoly market?

Economics: Foundations and Models

Choices and Trade-Offs in the Market

Where Prices Come From: The Interaction of Demand and Supply

Elasticity: The Responsiveness of Demand and Supply

Economic Efficiency, Government Price Setting and Taxes

Consumer Choice and Behavioural Economics

Technology Production and Costs

Firms in Perfectly Competitive Markets

Monopoly Markets

Monopolistic Competition: The Competitive Model in a More Realistic

The Markets for Labour and Other Factors of Production

Comparative Advantage and the Gains From International Trade

Government Intervention in the Market

Externalities, Environmental Policy and Public Goods

The Distribution of Income and Social Policy

Filters