Micro Economics For Today
10th Edition
ISBN: 9781337613064
Author: Tucker, Irvin B.
Publisher: Cengage,
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Chapter 10, Problem 14SQ
To determine
The
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Which of the following apply to oligopoly industries? Select one or more answers from the choices shown.
a. A few large producers.
b. Many small producers.
c. Strategic behavior.
d. Price taking.
Why do firms in an oligopoly have an incentive to cheat on collusion
agreements?
A. Cheating prevents other firms from lowering prices.
B. Cheating produces a kinked demand curve for the industry.
C. Cheating results in greater profits for the individual firm.
D. Cheating increases the industry's total profits.
A duopoly occurs when
A. two producers of a particular good compete in the same market
B. one producer of two goods sells the goods in a monopoly market
C. several producers of two goods compete in a competitive market
D. two producers of two different goods compete in an oligopoly market
Chapter 10 Solutions
Micro Economics For Today
Ch. 10.1 - Prob. 1YTECh. 10.5 - Prob. 1GECh. 10.6 - Prob. 1YTECh. 10 - Prob. 1SQPCh. 10 - Prob. 2SQPCh. 10 - Prob. 3SQPCh. 10 - Prob. 4SQPCh. 10 - Prob. 5SQPCh. 10 - Prob. 6SQPCh. 10 - Prob. 7SQP
Ch. 10 - Prob. 8SQPCh. 10 - Prob. 9SQPCh. 10 - Prob. 10SQPCh. 10 - Prob. 11SQPCh. 10 - Prob. 12SQPCh. 10 - Prob. 13SQPCh. 10 - Prob. 1SQCh. 10 - Prob. 2SQCh. 10 - Prob. 3SQCh. 10 - Prob. 4SQCh. 10 - Prob. 5SQCh. 10 - Prob. 6SQCh. 10 - Prob. 7SQCh. 10 - Prob. 8SQCh. 10 - Prob. 9SQCh. 10 - An oligopoly is a market structure in which a. one...Ch. 10 - Prob. 11SQCh. 10 - A common characteristic of oligopolies is a....Ch. 10 - Prob. 13SQCh. 10 - Prob. 14SQCh. 10 - Prob. 15SQCh. 10 - Prob. 16SQCh. 10 - Prob. 17SQCh. 10 - Prob. 18SQCh. 10 - Prob. 19SQCh. 10 - The kinked oligopoly demand curve is a result of...
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- Which of the following would most likely create the setting for an Oligopoly ? A. The government grants T'Challa and Nakia a patent for their respective vibranium-based electric car batteries. B. Market Demand is two or more times less than the quantity needed to produce at the minimum of the Average Cost Curve. C. Market Demand is two or more times greater than the quantity needed to produce at the minimum of the Marginal Cost Curve. D. Insumountable technological difficulty associated with producing similar products serves as an effective Barrier to Entry. E. All of the Abovearrow_forwardis an organization created a formal agreement between a group of producers of a good or service, to regulate supply in an effect to regulate or manipulate prices. Select one: a. Oligopoly. b. Cartel. c. Perfect competition. d. Monopoly.arrow_forwardWhat are the characteristics of an oligopoly? Choose all that apply. A. One particular product or service has no substitute. B. A few large sellers exist. C. Only one seller exists. D. Products and services tend to be identical or similar.arrow_forward
- Which market structure shown below would be expected to maximize consumer surplus? A. Monopoly B. Oligopoly C. Perfectly Competitivearrow_forwardA firm is operating in the United States with only two other competitors in the industry. a. It is likely this industry would be characterized as: multiple choice 1 perfectly competitive. pure monopoly. monopolistically competitive. oligopoly. b. Firms in this industry will likely earn: multiple choice 2 an economic loss. an economic profit. a normal profit. c. If foreign firms begin supplying the product, increasing the number of competitors, it is likely that: multiple choice 3 economic profits will increase. economic losses will become smaller. economic profits will fall. normal profits will increase.arrow_forward1. Two firms produce identical products at zero cost, and they compete by setting prices. If each firm charges a low price, the both firms earn profits of zero. If each firm charges a high price, then each firm earns profits of $30. if one firm charges a high price and the other firm charges a low price, the firm that charges the lowest price earns profits of $50 and the firm charging the highest price earns profits of zero. a. Write this game in normal form. b. Suppose the game is infinitely repeated. Can the players sustain the "collusive outcome" as a Nash equilibrium if the interest rate if 50 percent?arrow_forward
- Which of the following statements is generally true? A. The degree of rivalry in an industry is largely independent of the number of firms. B. The smaller the number of firms in an industry, the greater the rivalry. C. The larger the number of firms in an industry, the greater the rivalry. D. Rivalry is less the larger the number of firms in an industry.arrow_forward1. Write a sentence or two defining the following terms in your own words. Give examples of each. s. Oligopoly t. Induced u. Inelastic Demandarrow_forwardI need full explanation 1. Considering all four market structures, which of the following occurs only in an oligopoly? a. A downward sloping market demand curve. b. A downward sloping demand curve for the individual firm. c. Interdependence and strategic behavior. d. A differentiated product. e. A standardized product. 2. A monopolistic competitor engages in advertising to a. Provide information about its good or product. b. Differentiate its product from those if its rivals. c. Increase the demand for its good or service. d. All of the above. 3. Which of the following advertisements provides information to the consumer? a. “CarbChips have half the carbohydrates of regular potato chips”. b. “The Taj Mahal restaurant is like a trip to India”. c. “Brain-power Books – just think it!” d. “Avion Airlines wants to take you higher”. 4. Firms in an Oligopoly produce a quantity of output that is less than the level produced by a perfectly competitive market and charge a price that is greater…arrow_forward
- If Amazon sells dozens of similar types of pencils at slightly different prices, we might assume the pencil market is _________. Select one: a. an oligopoly. b. a monopolistically competitive market. c. a monopoly. d. a perfectly competitive market.arrow_forward1. How might advertising make markets less competitive? How might it make markets more competitive? 2. Explain two benefits that might arise from the existence of brand names. 3. If the oligopoly members agree on a total quantity to produce, what quantity would they choose? Why? 4. What does the prisoners' dilemma teach us about oligopolies?arrow_forwardQuestion 20 In the market for a brand name medicine with a single company selling the medicine, that company is a_______Eventually, the government lets other companies sell the medicine as a "generic" alternative to the brand name. The effect of this increased competition is to_______ the medicine's price.O. monopoly, decreaseO. oligopoly, decreaseO. monopoly, increaseO. oligopoly, increasearrow_forward
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