monopolist’s market

11 Oct monopolist’s market

1) When a second firm enters a monopolist’s market, the initial demand curve facing the monopolist will:

 

2) Which of the following is NOT a characteristic of a monopolistically competitive market?

 

3) Suppose you operate in a monopolistically competitive market. If you sell your good at a price of $10 and your average cost of production is $8:

 

4) As firms enter a monopolistically competitive market in the long run:

 

5) Figure 11.1 depicts demand and costs for a monopolistically competitive firm. At the profit maximizing output level,

 

6) If Figure 11.1 depicts the current situation for a monopolistically competitive firm, then in the long run we expect:

 

7) Figure 11.2 shows demand and costs for a monopolistically competitive firm. At the profit maximizing output level, the firm’s profit is:

 

8) Figure 11.2 shows demand and costs for a monopolistically competitive firm. In the long-run we expect:

 

9) Figure 11.2 shows demand and costs for a monopolistically competitive firm. At the profit maximizing output level,

 

10) Figure 11.2 shows demand and costs for a monopolistically competitive firm. In the long-run we expect:

 

11) Figure 11.2 shows demand and costs for a monopolistically competitive firm. In the long-run we expect:

 

12) If you were thinking of entering the ice cream business, would you make a product that is just like one that is already being produced? Explain.

 

13) The four-firm concentration ratio for the market depicted in Table 12.1 is:

 

14) Suppose that there are five firms in a market, each controlling 20% of the market. The HHI would equal

 

15) Figure 12.1 shows the market for a successful price-fixing arrangement (cartel) between two identical firms . When the two firms act like one and charge the same price, the market price will be ________ and each firm will produce and sell a quantity of ________.

 

16) Figure 12.1 shows a successful price-fixing arrangement (cartel) between two identical firms. When the two firms act like one and charge the same price, each firm will earn an economic profit of ________.

 

17) Figure 12.1 shows a successful price-fixing arrangement (cartel) between two identical firms. If the cartel collapses and the two firms compete against each other, the price will be ________ and the quantity will be ________.

 

18) Consider Figure 12.3. Becky’s dominant strategy is ________ and David’s dominant strategy is ________.

 

19) Consider Figure 12.3. Which of the following statements is true?

 

20) Consider Figure 12.3. David chooses to charge a low price:

 

21) Consider Figure 12.3. If Becky’s payoff in the top rectangle were 300 instead of 90, the outcome of the game would be that:

 

22) Consider Figure 12.3. If David’s payoff in the bottom rectangle were 40 instead of 70, the outcome of the game would be that:

 

23) Consider Figure 12.3. If Becky’s payoff in the second rectangle from the top were 80 instead of 60, the outcome of the game would be that:

 

24) A Nash Equilibrium in a game is that outcome in which

 

25) The duopolists’ dilemma refers to the situation in which

 

26) Joe and Steve are duopolists who each can follow two strategies: cooperate and jointly act like a monopolist, or don’t cooperate (cheat) and act like duopolists. Their profits are as follows:

 

27) One method firms can use to solve the duopolists’ dilemma is to engage in:

 

28) In Figure 12.6, airline Fly Smart is initially a secure monopoly between two cities X and Y at point M, serving 300 passengers per day at the profit maximizing price of $300 per ticket. What is Fly Smart’s profit per ticket?

 

29) The natural monopoly in Figure 13.3 wants to produce:

 

30) Where it wants to produce the firm in Figure 13.3 would be:

A) making a zero economic profit.