Question 1

The theory of oligopoly provides another reason that free trade can benefit all countries because

Accepted Answer

A)  increased competition leads to larger deadweight losses.
B)  As the number of firms within a given market increases,the price of the good decreases.
C)  As the number of firms within a given market increases,the profit of each firm increases.
D)  All of the above are correct.E) A) and C)
F) None of the above

Question 2

In an oligopoly,the total output produced in the market is

Accepted Answer

A)  higher than the total output that would be produced if the market were a monopoly and higher than the total output that would be produced if the market were perfectly competitive.
B)  higher than the total output that would be produced if the market were a monopoly but lower than the total output that would be produced if the market were perfectly competitive.
C)  lower than the total output that would be produced if the market were a monopoly but higher than the total output that would be produced if the market were perfectly competitive.
D)  lower than the total output that would be produced if the market were a monopoly and lower than the total output that would be produced if the market were perfectly competitive.E) None of the above
F) All of the above

Question 3

Although the practice of predatory pricing is a common claim in antitrust suits,some economists are skeptical of this argument because they believe

Accepted Answer

A)  the evidence of its practice is nearly impossible to collect.
B)  predatory pricing is not a profitable business strategy.
C)  even though predatory pricing is a profitable business strategy,it is on balance beneficial to society.
D)  predatory pricing actually attracts new firms to the industry.E) A) and B)
F) B) and C)

Question 4

Assuming that oligopolists do not have the opportunity to collude,once they have reached the Nash equilibrium,it

Accepted Answer

A)  is always in their best interest to supply more to the market.
B)  is always in their best interest to supply less to the market.
C)  is always in their best interest to leave their quantities supplied unchanged.
D)  may be in their best interest to do any of the above,depending on market conditions.E) None of the above
F) A) and D)

Question 5

A situation in which firms choose their best strategy given the strategies chosen by the other firms in the market is called

Accepted Answer

A)  a competitive equilibrium.
B)  an open-market solution.
C)  a socially-optimal solution.
D)  a Nash equilibrium.E) B) and C)
F) A) and D)

Question 6

Table 17-9   Price  Quantity  Total  Revenues 700065100650060200120005530016500504002000045500225004060024000357002450030800240002590022500201000200001511001650010120012000513006500014000\begin{array} { | r | r | r | } \hline 	ext { Price } & 	ext { Quantity } & \begin{array} { c } 	ext { Total } \	ext { Revenues }\end{array} \\hline 70 & 0 & 0 \\hline 65 & 100 & 6500 \\hline 60 & 200 & 12000 \\hline 55 & 300 & 16500 \\hline 50 & 400 & 20000 \\hline 45 & 500 & 22500 \\hline 40 & 600 & 24000 \\hline 35 & 700 & 24500 \\hline 30 & 800 & 24000 \\hline 25 & 900 & 22500 \\hline 20 & 1000 & 20000 \\hline 15 & 1100 & 16500 \\hline 10 & 1200 & 12000 \\hline 5 & 1300 & 6500 \\hline 0 & 1400 & 0 \\hline\end{array} Price 7065605550454035302520151050​ Quantity 010020030040050060070080090010001100120013001400​ Total  Revenues ​06500120001650020000225002400024500240002250020000165001200065000​​ 
-Refer to Table 17-9.If this market were perfectly competitive instead of oligopolistic,what quantity would be produced?

Accepted Answer

A)  1400
B)  1300
C)  1200
D)  1100 E) A) and C)
F) A) and B)

Question 7

Why would lack of cooperation between criminal suspects be desirable for society as a whole?

Accepted Answer

A)  The suspects are able to choose optimal outcomes for themselves by acting in their own self interest.
B)  The prisoners' dilemma safeguards the criminals' constitutional rights.
C)  More criminals will be convicted.
D)  None of the above is correct.E) B) and C)
F) A) and C)

Question 8

As the number of firms in an oligopoly becomes very large,the price effect disappears.

Accepted Answer

A) True 
 B)False

Exam 17: Oligopoly

Although the practice of predatory pricing is a common claim in antitrust suits,some economists are skeptical of this argument because they believe

Correct Answer
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Why would lack of cooperation between criminal suspects be desirable for society as a whole?

Correct Answer
verified

Assuming that oligopolists do not have the opportunity to collude,once they have reached the Nash equilibrium,it

Correct Answer
verified

The theory of oligopoly provides another reason that free trade can benefit all countries because

Correct Answer
verified

In an oligopoly,the total output produced in the market is

Correct Answer
verified

As the number of firms in an oligopoly becomes very large,the price effect disappears.

Correct Answer
verified

A situation in which firms choose their best strategy given the strategies chosen by the other firms in the market is called

Correct Answer
verified

Correct Answer
verified

Exam 17: Oligopoly

Although the practice of predatory pricing is a common claim in antitrust suits,some economists are skeptical of this argument because they believe

Correct AnswerverifiedShow Answer

Why would lack of cooperation between criminal suspects be desirable for society as a whole?

Correct AnswerverifiedShow Answer

Assuming that oligopolists do not have the opportunity to collude,once they have reached the Nash equilibrium,it

Correct AnswerverifiedShow Answer

The theory of oligopoly provides another reason that free trade can benefit all countries because

Correct AnswerverifiedShow Answer

In an oligopoly,the total output produced in the market is

Correct AnswerverifiedShow Answer

As the number of firms in an oligopoly becomes very large,the price effect disappears.

Correct AnswerverifiedShow Answer

A situation in which firms choose their best strategy given the strategies chosen by the other firms in the market is called

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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