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1. Which of the following economists was not important in the development of game theory?

 

A. Antoine Cournot
 

B. John von Neumann
 

C. John Forbes Nash
 

D. Alan Greenspan

 

2. If the price discounting by two firms in the same market was a sequential process where each firm has perfect knowledge and knows what each payoff is:

 

A. neither firm lowers its price.
 

B. both firms lower their price.
 

C. one firm lowers its price, while the other firm does not.
 

D. one firm exits the market.

 

3. Which of the following characteristics do monopolistically competitive markets and competitive markets not share?

 

A. zero economic profits in the long run
 

B. Many firms in the market
 

C. Differentiated products
 

D. Ease of entry into the market

 

 4. A predatory pricing strategy:

 

A. Rewards cooperation between rival firms.
 

B. is typically used by small firms to gain market share from larger firms.
 

C. can result in higher consumer prices in the short run but more competition in the future.
 

D. can result in lower consumer prices in the short run but higher prices in the long run.

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Retselisitsoe Pokothoane
Retselisitsoe PokothoaneLv10
28 Sep 2019

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Related questions

1. G-Force is competing with three other firms for a military contract to remove land mines. Which of the following would not be a part of their competition strategy?

a. comparative advantage

b. zero-sum game

c. discrete strategy

d. dynamic game

2. The discoverers of imperfect markets focused on what economic process to criticize the competitive model?

a. comparative advantage

b. opportunity cost

c. discrete strategy

d. economies of scale

3. If the price discounting by two firms in the same market was a sequential process where each firm has perfect knowledge and knows what each payoff is:

a. neither firm lowers its price.

b. both firms lower their price.

c. one firm lowers its price, while the other firm does not.

d. one firm exits the market.

4. A predatory pricing strategy:

a. rewards cooperation between rival firms.

b. is typically used by small firms to gain market share from larger firms.

c. can result in higher consumer prices in the short run, but more competition in the future.

d. can result in lower consumer prices in the short run, but higher prices in the long run.

1. In the kinked demand curve model:

 

A. Competitors follow any price change by a rival firm.
 

B. Competitors ignore any price change by a rival firm.
 

C. Competitors match any price increase and ignore any price decrease by a rival firm.
 

D. Competitors ignore any price increase and match any price decrease by a rival firm.

 

2. Force is competing with three other firms for a military contract to remove land mines. Which of the following would not be a part of their competition strategy?

 

 

A. one-off decision
 

B. zero-sum game
 

C. discrete strategy
 

D. dynamic game

 

3. The discoverers of imperfect markets focused on what economic process to criticize the competitive model?

 

A. comparative advantage
 

B.opportunity cost
 

C. maximizing profit
 

D. economies of scale

4. Firms that operate in an oligopoly market structure would have an incentive to:

 

a.increase sales volume with price reductions.
 

b.increase profit margins with price increases.
 

c.engage in explicit or implicit collusion.
 

d.expand market share with price ceilings.

32. Which of the following is not a difference between monopolies and perfectly competitive markets?

A. Monopolies face downward sloping demand curves while perfectly competitive firms face horizontal demand curves.

B. Monopolies charge a price higher than marginal cost while perfectly competitive firms charge a price equal to marginal cost.

C. Monopolies can earn profits in the long run while perfectly competitive firms break even.

D. Monopolies choose to produce the quantity at which marginal revenue equals marginal cost while perfectly competitive firms do not.

40. Which of the following statements is not correct?

A. Both monopolies and monopolistically competitive firms can earn economic profits in the long run.

B. Both monopolistically competitive and perfectly competitive firms can earn economic profits in the short run.

C. Only competitive firms produce the welfare-maximizing level of output.

D. Firms in perfect competition, monopolistic competition, and monopoly maximize profits by producing where marginal revenue equals marginal cost.

43. A monopolistically competitive firm is currently producing 20 units of output. At this level of output the firm is charging a price equal to $20, has marginal revenue equal to $12, has marginal cost equal to $12, and has average total cost equal to $18. From this information we can infer that

A. the profits of the firm are negative.

B. firms are likely to leave this market in the long run.

C. the firm is currently maximizing its profit.

D. All of the above are correct.

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