Question 1

Game theory was developed in the 1940s by John von Neuman,a mathematician,and an economist named

Accepted Answer

A)  John Nash. 
B)  John Maynard Keynes. 
C)  Oskar Morgenstern. 
D)  Milton Friedman. 
A)  John Nash. 
B)  John Maynard Keynes. 
C)  Oskar Morgenstern. 
D)  Milton Friedman.

Question 2

Explain the differences between total revenue,average revenue,and marginal revenue.

Accepted Answer

Total revenue equals price × q

Question 3

Economists use game theory to analyse oligopolies because

Accepted Answer

A)  real markets are too complicated to analyse without using games. 
B)  it is more enjoyable for economists and students to learn by playing games. 
C)  game theory helps us to understand why interactions among firms are crucial in determining profitable business strategies. 
D)  game theory is useful in understanding the actions of firms that are price takers. 
A)  real markets are too complicated to analyse without using games. 
B)  it is more enjoyable for economists and students to learn by playing games. 
C)  game theory helps us to understand why interactions among firms are crucial in determining profitable business strategies. 
D)  game theory is useful in understanding the actions of firms that are price takers.

Question 4

Why do economists refer to the pricing strategies of oligopoly firms as a prisoner's dilemma game?

Accepted Answer

A prisoners' dilemma is a game in which

Question 5

When a monopolistically competitive firm lowers it price,one bad thing happens to the firm.What is this 'one bad thing' called?

Accepted Answer

A)  The output effect 
B)  The income effect 
C)  The substitution effect 
D)  The price effect 
A)  The output effect 
B)  The income effect 
C)  The substitution effect 
D)  The price effect

Question 6

Figure 9-17  
-Refer to Figure 9-17.What is the productively efficient output for the firm represented in the diagram?

Accepted Answer

A)  Qf units 
B)  Qg units 
C)  Qh units 
D)  Qj units 
A)  Qf units 
B)  Qg units 
C)  Qh units 
D)  Qj units

Question 7

All games share three characteristics.Two of these characteristics are rule and strategies.What is the third characteristic called?

Accepted Answer

A)  Competition 
B)  Collusion 
C)  Results 
D)  Payoffs 
A)  Competition 
B)  Collusion 
C)  Results 
D)  Payoffs

Question 8

A market comprised of only two firms is called a

Accepted Answer

A)  competitive market. 
B)  duopoly. 
C)  monopoly. 
D)  monopolistically competitive market. 
A)  competitive market. 
B)  duopoly. 
C)  monopoly. 
D)  monopolistically competitive market.

Question 9

An oligopoly firm is similar to a monopolistically competitive firm in that

Accepted Answer

A)  both firms face the prisoner's dilemma. 
B)  both operate in a market in which there are entry barriers. 
C)  both firms have market power. 
D)  both firms are in industries characterised by interdependent firms. 
A)  both firms face the prisoner's dilemma. 
B)  both operate in a market in which there are entry barriers. 
C)  both firms have market power. 
D)  both firms are in industries characterised by interdependent firms.

Question 10

Consumers in monopolistically competitive markets face a trade-off between paying prices greater than marginal costs and purchasing products that are more closely suited to their tastes.

Accepted Answer

A) True 
 B)False

Question 11

Figure 9-4   Figure 9-4 shows short-run cost and demand curves for a monopolistically competitive firm in the market for designer watches.
-Refer to Figure 9-4.If the firm represented in the diagram is currently producing and selling Qa units,what is the price charged?

Accepted Answer

A)  P0 
B)  P1 
C)  P2 
D)  P3 
A)  P0 
B)  P1 
C)  P2 
D)  P3

Game theory was developed in the 1940s by John von Neuman,a mathematician,and an economist named

Explain the differences between total revenue,average revenue,and marginal revenue.

Economists use game theory to analyse oligopolies because

Why do economists refer to the pricing strategies of oligopoly firms as a prisoner's dilemma game?

When a monopolistically competitive firm lowers it price,one bad thing happens to the firm.What is this 'one bad thing' called?

Figure 9-17 -Refer to Figure 9-17.What is the productively efficient output for the firm represented in the diagram?

All games share three characteristics.Two of these characteristics are rule and strategies.What is the third characteristic called?

A market comprised of only two firms is called a

An oligopoly firm is similar to a monopolistically competitive firm in that

Consumers in monopolistically competitive markets face a trade-off between paying prices greater than marginal costs and purchasing products that are more closely suited to their tastes.

Figure 9-4 Figure 9-4 shows short-run cost and demand curves for a monopolistically competitive firm in the market for designer watches. -Refer to Figure 9-4.If the firm represented in the diagram is currently producing and selling Q_a units,what is the price charged?

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Market Efficiency and Market Failure

The Economics of Healthcare

Firms,the Stock Market,and Corporate Governance

Consumer Choice and Elasticity

Technology, production, and Costs

Monopoly and Antitrust

Monopolistic Competition and Oligopoly

GDP: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System and Business Cycles

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Comparative Advantage, international Trade, and Exchange Rates

Filters

Exam 9: Firms in Perfectly Competitive Markets

Game theory was developed in the 1940s by John von Neuman,a mathematician,and an economist named

Explain the differences between total revenue,average revenue,and marginal revenue.

Economists use game theory to analyse oligopolies because

Why do economists refer to the pricing strategies of oligopoly firms as a prisoner's dilemma game?

When a monopolistically competitive firm lowers it price,one bad thing happens to the firm.What is this 'one bad thing' called?

Figure 9-17 -Refer to Figure 9-17.What is the productively efficient output for the firm represented in the diagram?

All games share three characteristics.Two of these characteristics are rule and strategies.What is the third characteristic called?

A market comprised of only two firms is called a

An oligopoly firm is similar to a monopolistically competitive firm in that

Consumers in monopolistically competitive markets face a trade-off between paying prices greater than marginal costs and purchasing products that are more closely suited to their tastes.

Figure 9-4 Figure 9-4 shows short-run cost and demand curves for a monopolistically competitive firm in the market for designer watches. -Refer to Figure 9-4.If the firm represented in the diagram is currently producing and selling Qa units,what is the price charged?

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Market Efficiency and Market Failure

The Economics of Healthcare

Firms,the Stock Market,and Corporate Governance

Consumer Choice and Elasticity

Technology, production, and Costs

Monopoly and Antitrust

Monopolistic Competition and Oligopoly

GDP: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System and Business Cycles

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Comparative Advantage, international Trade, and Exchange Rates

Filters

Figure 9-4 Figure 9-4 shows short-run cost and demand curves for a monopolistically competitive firm in the market for designer watches. -Refer to Figure 9-4.If the firm represented in the diagram is currently producing and selling Q_a units,what is the price charged?