Test tema 14 microeconomia PDF

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Test del tema 14 de microeconomia del grupo de ADE en inglés A6-B6....

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1. Which of the following statements about oligopolies is not correct? a. There are only a few firms in the industry. b. Each firm possesses some market power. c. Oligopolistic firms are always large. d. An important reason for the existence of oligopolies is the presence of economies of scale. 2. The U.S. baseball glove industry is an oligopoly. This means that glove suppliers face a ________________ than a monopoly glove supplier would: a. smaller price effect b. larger price effect c. lower cost structure d. higher cost structure 3. In the classic prisoners' dilemma with two accomplices in crime, the Nash equilibrium outcome is: a. neither individual confesses. b. both individuals confess. c. one confesses and the other does not. d. neither individual follows a dominant strategy. 4. In the classic prisoners' dilemma with two accomplices in crime, the dominant strategy for each individual is to: a. confess. b. not confess. c. confess only if the other individual confesses. d. confess only if she feels more at fault than the other. 5. In using a prisoners' dilemma game to model the behavior of firms within an oligopoly, we are assuming that: a. each firm seeks to act in its best interest. b. each firm seeks to act in the best interest of the industry as a whole. c. all firms will pursue the same strategy. d. each firm will pursue a different strategy. 6. For competing firms, a(n) ____________________ strategy is the strategy that is in a firm's best interest, ________________ the action taken by the other firm: a. dominant; regardless b. dominant; only after considering c. equilibrium; only after considering d. tit for tat; regardless 7. The 1890 Sherman Antitrust Act makes it illegal for firms to: a. raise prices in an attempt to increase profits. b. engage in tacit collusion. c. engage in price discrimination. d. behave together like a monopolist.

8. When firms engage in tacit collusion, they: a. meet periodically to establish production quotas. b. meet periodically to establish a monopoly price. c. limit production in a way that enhances industry profits. d. compete on price by undercutting each other. 9. A firm that engages in strategic behavior: a. fits the definition of a natural monopoly. b. does not seek to maximize long-term profit. c. may attempt to influence the behavior of other firms. d. takes the market price as given, as does a perfectly competitive firm. 10. For the members of OPEC, it is in their combined interests to: a. restrict yearly output and keep prices high. b. maximize yearly petroleum output. c. engage in product differentiation. d. reach a noncooperative equilibrium. 11. The model in which one firm sets its price first, and others in the industry charge the same price is known as: a. the Nash equilibrium. b. price leadership. c. a tit for tat strategy. d. prisoners' dilemma. 12. Game theory is the: a. branch of economics that looks at political motives. b. branch of economics that looks at psychological motives. c. science of designing effective product differentiation. d. study of behavior in situations of interdependence. 13. The reason why game theory is NOT applied to perfect competition is that: a. it is difficult to define the pay-offs that motivate perfectly competitive firms. b. we cannot define a dominant strategy for perfect competitio n. c. the behavior of one perfectly competitive firm does not affect the behavior of its rivals. d. the price leadership model works better in describing perfect competition. 14. A price war is evidence of a: a. perfectly competitive market. b. successful tacit collusion. c. successful nonprice competition. d. collapse of tacit collusion. 15. Which of the following is not true? a. Tacit collusion among firms is the normal state of oligopoly. b. Tacit collusion in oligopoly leads to perfectly competitive pricing. c. Oligopoly firms are able to achieve tacit collusion without any explicit agreement.

d. A large number of firms will make it hard for oligopoly to coordinate on higher prices. 16. The outcome in a Nash equilibrium: a. maximizes total well-being of all players . b. means that each player is happy with his decision, given the decisions of the other players. c. occurs when players collude to produce the best possible outcome. d. occurs when one player convinces the others to follow a course of action that will be in everyone's best interest. 17. Which word best characterizes the interaction among firms in any oligopoly? a. cooperation b. collusion c. confrontation d. interdependence 18. Successful tacit collusion is most likely to arise among oligopolistic firms when they: a. are all the same size. b. all have the same production costs. c. do not have a means of engaging in nonprice competition. d. each play the tit for tat strategy. 19. Antitrust policy is designed to: a. protect the employees of monopoly firms. b. protect the stockholders of monopoly firms. c. prevent firms from exercising monopoly power. d. prevent firms from engaging in price discrimination. 20. Why is collusion more likely in cases of oligopoly than in perfect competition? a. In oligopoly, all firms sell an identical product; but in perfect competition, the product varies between producers. b. There are too many firms in perfect competition to allow for collusion. c. Oligopoly moves towards an equilibrium outcome; perfect competition does not. d. Perfect competition moves toward an equilibrium outcome; oligopoly does not....