The interdependence observed among oligopolistic firms is often studied using the tools of game theory.

An oligopoly firm faces a kinked demand curve with the two segments given by: P = 230 – 0.5Q and P = 280 – 1.5Q. The firm currently has a constant marginal cost, MC of $150. Determine the quantity and price at the kink.

The concept of a Nash equilibrium, when applied to an oligopoly, relies on the notion that Firm A in an oligopoly chooses its own best strategy based on which consideration? based on the strategies that other firms have chosen based on the knowledge that other firms are likely to choose their strategies in response to Firm A's choice of a strategy based on the objective of maximizing the collective profits of all firms in the industry based on the internal financial information of Firm A

I have constructed a Bertrand game (competition in prices) and presented you with the reaction functions of each firm. P2 P1 = 12.5 + 4 P1 P2 == Use excel to draw the reaction functions. Solve for the Nash equilibrium + n IN

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.

While game theory predicts non-cooperative behavior for a one-shot Prisoner's dilemma. By repeating the game, say 20 rounds, it becomes possible to adopt more complex strategies that allow cooperative play as a Nash Equilibrium in at least some rounds of the game. True False

Which of the following scenarios is a negative example of an oligopoly?         Wireless phone companies have nearly eliminated standard cell phones, forcing consumers to buy smartphones.         Soft drink companies offer several choices to consumers, including regular, diet, zero sugar, and accent flavors such as cherry or lemon.         Automobile companies continue to improve vehicles and invent new features to appeal to consumers.         Fast-food chains keep prices low to entice consumers.

A Stackelberg model refers to a two-stage sequential game similar to a Hotelling duopoly model in which one firm acts as leader in a first stage and the other as follower in a second stage. none of the other answers are correct. game similar to a Cournot duopoly model in which one firm acts as follower in a first stage and the other as leader in a second stage. two-stage sequential game similar to a Bertrand duopoly model in which one firm acts as leader in a first stage and the other as follower in a second stage. two-stage sequential game similar to a Cournot duopoly model in which one firm acts as leader in a first stage and the other as follower in a second stage. O O

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

Explain  how the Prisoners' Dilemma game can be used as a way to describe the market structure of Oligopoly.