A separating feature of an oligopolistic market is the tension in between a. Profit maximization and cost minimization. B. Developing a little amount that output and also charging a price above marginal cost. C. Cooperation and self interest. D. Short-run decisions and long-run decisions.

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Suppose that Jay-Z and Beyonce space duopolists in the music industry. In January, they agree to work-related together as a monopolist, charging the syndicate price for their music and producing the monopoly quantity the songs. By February, each singer is considering break the agreement. What would certainly you expect to happen next? a. Jay-Z and Beyonce will determine that that is in each singer"s ideal self interest to maintain the agreement. B. Jay-Z and also Beyonce will certainly each break the agreement. The new equilibrium amount of songs will decrease, and also the new equilibrium price will certainly increase. C. Jay-Z and also Beyonce will certainly each break the agreement. The brand-new equilibrium amount of songs will increase, and also the new equilibrium price additionally will increase. D. Jay-Z and Beyonce will certainly each break the agreement. The new equilibrium amount of songs will certainly increase, and also the brand-new equilibrium price will certainly decrease.
d. Jay-Z and Beyonce will certainly each rest the agreement. The new equilibrium amount of songs will certainly increase, and also the new equilibrium price will certainly decrease.
As a group, oligopolists would always earn the greatest profit if they would certainly a. Charge the very same price the a monopolist would certainly charge if the sector were a monopoly. B. Produce more than the perfectly competitive amount of output. C. Create the perfectly competitive amount of output. D. Operate according to their very own individual self-interests.
The equilibrium price in a market defined by oligopoly is a. Lower than in syndicate markets and greater than in perfectly competitive markets. B. Lower than in syndicate markets and also lower 보다 in perfect competitive markets. C. Greater than in monopoly markets and lower 보다 in perfectly competitive markets. D. Higher than in syndicate markets and greater than in perfectly competitive markets.
The prisoners" dilemma game a. Is a game in which specifically one of the two players has a dominant strategy. B. Gives insight into why collaboration is difficult. C. Provides insight into why cooperation is personally rational. D. Is a game in which no player has actually a leading strategy.
Games that room played an ext than once typically a. Result in outcomes that do not reflect share rationality. B. Bring about outcomes conquered purely by self-interest. C. Encourage cheating ~ above cartel production quotas. D. Make collusive arrangements simpler to enforce.
A cooperative agreement among oligopolists is less likely to it is in maintained, a. The smaller the variety of buyers of the oligopolists" product. B. The larger the number of buyers the the oligopolists" product. C. The much more likely the is that the game amongst the oligopolists will certainly be play over and over again. D. The better the number of oligopolists.
From society"s standpoint, cooperation among oligopolists is a. Desirable, due to the fact that it leader to an end result closer come the vain outcome 보다 what would be it was observed in the lack of cooperation. B. Undesirable, since it leader to output levels that room too high and also prices that are too high. C. Desirable, due to the fact that it leads to much less conflict amongst firms and a more comprehensive variety of products for consumers. D. Undesirable, because it leader to calculation levels that are too low and prices that room too high.
OPEC is able to raise the price of its product through a. Raising the supply of oil above the compete level. B. Tying. C. Setup production levels because that each that its members. D. Imposing resale price maintain agreements ~ above members.
The reduced the concentration ratio, thea. More control an individual firm has to set prices.b. An ext competitive the industry.c. Less competitive the industry.d. Both a and also c room correct.
Which the the adhering to industries has the highest possible concentration ratio?a. Wheatb. Novelsc. Cigarettesd. Dog food
One an essential difference between an oligopoly market and a competitive industry is the oligopolistic firmsa. Room price takers if competitive firms space not.b. Can impact the profit of other firms in the market by the selections they make while that company in competitive industries do not impact each other by the choices they make.c. Sell fully unrelated products while compete firms execute not.d. Offer their product in ~ a price same to marginal expense while competitive firms perform not.
When an market has plenty of firms, the sector is a. An oligopoly if the this firm sell identified products, however it is monopolistically compete if the that company sell the same products. B. One oligopoly if the that company sell identified products, but it is perfect competitive if the firms sell the same products. C. Monopolistically competitive if the firms sell distinguished products, however it is perfect competitive if the that company sell identical products. D. Perfectly competitive if the this firm sell differentiated products, however it is monopolistically compete if the that company sell identical products
c. Monopolistically competitive if the that company sell differentiated products, yet it is perfect competitive if the firms sell identical products.
A monopolistically compete firma. Charges a price that is same to marginal cost.b. Experiences a zero profit in the long run.c. Produces in ~ the efficient scale in the lengthy run.c. All of the over are correct.
As brand-new firms go into a monopolistically vain market, earnings of existing that company a. Rise, and also product diversity in the market increases.b. Rise, and product diversity in the industry decreases.c. Decline, and product diversity in the industry increases.d. Decline, and product diversity in the sector decreases.
Entry and exit drive each for sure in a monopolistically competitive sector to a allude of tangency between its a. Marginal revenue curve and also its total cost curve.b. Marginal revenue curve and its average total cost curve.c. Need curve and also its complete cost curve.d. Demand curve and its average full cost curve.

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In the long run, a firm in a perfectly competitive sector operates a. At its efficient scale, and also a monopolistically competitive for sure operates at its effective scale.b. At its reliable scale, and a monopolistically competitive for sure operates v excess capacity. C. Through excess capacity, and also a monopolistically competitive for sure operates through excess capacity. D. With excess capacity, and also a monopolistically competitive firm operates at its reliable scale.
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