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From society's standpoint cooperation among oligopolists is

09/11/2021 Client: muhammad11 Deadline: 2 Day

1. A Distinguishing Feature Of An Oligopolistic Industry Is The Tension Between A. Short-Run Decisions And Long-Run Decisions. B. Producing A Small Amount...

1. A distinguishing feature of an oligopolistic industry is the tension between a. short-run decisions and long-run decisions. b. producing a small amount of output and charging a price above marginal cost. c. cooperation and self interest. d. profit maximization and cost minimization. 2. An agreement among firms in a market about quantities to produce or prices to charge is called a. excess capacity. b. collusion. c. tying. d. a strategic situation. 3. Which of the following statements is correct? a. An oligopoly is an example of monopolistic competition. b. When oligopoly firms collude, they are behaving as a cartel. c. When duopoly firms reach a Nash equilibrium, their combined level of output is the monopoly level of output. d. In an oligopoly, self-interest drives the market to the competitive outcome. 4. Cartels are difficult to maintain because a. cartel agreements are conducive to monopoly outcomes. b. there is always tension between cooperation and self-interest in a cartel. c. firms pay little attention to the decisions made by other firms. d. antitrust laws are difficult to enforce. 5. An oligopoly would tend to restrict output and drive up price if a. firms engage in informative advertising. b. firms produce a standardized product. c. barriers to entering the industry are negligible. d. firms collude and behave like a monopoly. 6. According to the Clayton Act, a. the government was able to incarcerate the CEO of a firm for illegal pricing arrangements. b. lawyers are given an incentive to reduce the number of cases involving cooperative arrangements. c. individuals can sue to recover damages from illegal cooperative agreements. d. private lawsuits are discouraged. 7. In the prisoners' dilemma game with Bonnie and Clyde as the players, the likely outcome is a. a very good outcome for Bonnie, but a bad outcome for Clyde. b. a very good outcome for Clyde, but a bad outcome for Bonnie. c. a very good outcome for both players. d. a bad outcome for both players. 8. From society's standpoint, cooperation among oligopolists is a. desirable, because it leads to an outcome closer to the competitive outcome than what would be observed in the absence of cooperation. b. undesirable, because it leads to output levels that are too high and prices that are too high. c. undesirable, because it leads to output levels that are too low and prices that are too high. d. desirable, because it leads to less conflict among firms and a wider variety of products for consumers. 9. The story of the prisoners' dilemma shows why a. economists are unanimous in condemning resale price maintenance, since it inevitably reduces competition. b. oligopolies can fail to cooperate, even when cooperation is in their best interest. c. oligopolies can fail to act independently, even when independent decision-making is in their best interest. d. predatory pricing is clearly not in society's best interest. 10. When all firms choose their best strategy given the strategies that all the other firms have chosen, the result is a Nash equilibrium. a. True b. False

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