ECN 104 Lecture Notes - Monopolistic Competition, Nash Equilibrium, University Of Waterloo
23 Apr 2013
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Econ 101 - study questions #7: lau. Explain the excess capacity theory of monopolistic competition. Explain the pricing and output policy in oligopolistic markets when price leadership exists. Explain the conditions where collusive agreement is most likely to be successful. Explain why prices tend to be fairly rigid in some industries where the market structure is oligopolistic. Explain the nash equilibrium; the dominant strategy equilibrium. For a monopolistically competitive firm to be earning positive economic profit, For a monopolistically competitive firm in long-run equilibrium, a) b) c) d) e) Mc = ar but atc > ar. none of the above is true. Which one of the following characteristics applies to oligopolistic markets? a) b) There is perfectly free entry of rival firms. Firms are so large relative to the market that they do not have to consider the behaviour of rival firms. Firms are mutually dependent because there are so few firms in the industry.
