In an oligopolistic market there are            many buyers.        few buyers.        few sellers.        many sellers.

An oligopolistic market structure is distinguished by several characteristics, one of which is difficult entry. What are some other characteristics of this market structure? Check all that apply. Market control by many small firms   a) Market control by a few large firms   b) Mutual interdependence   c) Mutual dependence   d) Either similar or identical products

Price maker firm exists in oligopoly market structure

Compare an oligopolistic industry that has a great deal of communication among its members with an oligopolistic industry that has little communication and the firms want to maximize profits for themselves. The first industry will likely earn _________ profits and produce __________ output than the second industry. a. lower; moreb. higher; morec. lower; lessd. higher; less

Price leadership represents a situation where oligopolistic firms Multiple Choice   reduce their reliance on nonprice competition.   form a cartel.   face a kinked demand curve.   tacitly collude.

Two men’s clothing stores that compete for most of the market in a small town in Ohio and will choose their weekly advertising levels sequentially. The newspaper advertising department calls the clothing stores in alphabetical order to find out how much advertising each firm wishes to buy. Somehow — and nobody at the newspaper knows exactly how this happens — Arbuckle’s advertising decision “leaks out” to Mr. B’s, which then knows Arbuckle’s advertising decision when it makes its advertising decision for the week. The following payoff table facing the two firms, Arbuckle & Son and Mr. B’s, shows the weekly profit outcomes for the various advertising decision combinations. The payoff table is common knowledge. Use this payoff table to construct the appropriate sequential decision on the blank game tree provided below. If the manager at Arbuckle and Son employs the roll-back method to make the advertising decision for Arbuckle, the likely outcome will be: Multiple Choice $5,000 of…

Company A and Company B are competing oligopolists. Both companies are considering increasing or maintaining their prices. The payoff matrix shows the profits of the companies in millions based on their possible actions.. Company A Increase Price Company B Increase Price Maintain Price $50, $40 Maintain Price $55, $45 $35, $30 $60, $35 The government offers a $5 million subsidy to maintain current pricing. What is the expected outcome of the new payoff matrix, given the subsidy? The Nash equilibrium changes, and both companies will maintain their prices The Nash equilibrium changes, and both companies will increase their prices. The Nash equilibrium remains the same, and both companies will increase their prices Company A will increase its price, while Company B maintains its price. Company A will maintain its price, while Company B increases its price

When does cut-throat competition happen with oligopolistic firms? Group of answer choices When each firm acts more like a monopoly and colludes with each other to set prices in the market. When the firms compete hard and to stop acting like perfect competitors by driving up costs which leads in the long-run to higher profits. When the firms push each other with stiff competition acting like perfect competitors driving down costs, which in the long-run leads to zero profits.

Answer multiple choice

Describe the basic elements of a game, strategy, payoffs, dominant strategy, and Nash equilibrium. How game theory can help to understand the behavior of an oligopolistic firm.