ECON 213 Quiz 12 Liberty University Solution
There are four ice cream shops on a small tourist island. The accompanying table shows the quantity of ice cream cones that each firm produces in a typical year and the price that each firm currently charges for each ice cream cone it sells. An economist might suspect __________ collusion occurring in this market where __________ is the price leader and all other firms set price to match the price leader.
The practice of setting prices deliberately below __________ costs in an effort to drive a competitor out of the market is known as predatory pricing.
Firm A prices its products so low that it drives competitors out of the market. After all of its competitors have been driven out of the market, Firm A raises prices significantly. Which statement best explains how regulation applies to this situation?
Like a pure monopoly, an oligopoly is characterized by:
A monopolistically competitive market consists of many sellers, an oligopoly consists of __________ seller(s), and a monopoly consists of __________ seller(s).
The practice of setting prices deliberately below average variable costs in order to put a rival out of business is known as:
KitNSit, Inc. and Kittysitters, Inc. are two catsitting services in Kent, Ohio. There are no other catsitting services so the market is considered to be a duopoly. According to the kinked demand prices, Kittysitters, Inc. will __________.
According to Section 2 of the Sherman Antitrust Act, a person who attempts to monopolize commerce among the several states is guilty of a(n):
According to the kinked demand curve theory, the behavior of firms in an oligopoly creates a demand curve that is __________ at prices above the cartel price and __________ at prices below the cartel price.
When a market is characterized by mutual interdependence:
Assume all markets are in longrun equilibrium. The market quantity supplied in an oligopoly would be __________ the market quantity supplied in a monopoly and __________ the market quantity supplied in a competitive market.
In a repeated prisoner’s dilemma, a player that is playing titfortat will:
The presence of significant positive __________ externalities can drive small firms out of business or force them to merge with larger competitors.
The branch of economics that studies strategic decision making is called:
If network externalities exist in an industry, the __________ firm to enter the market is often the one that succeeds in dominating the industry.
Legislative efforts to curtail the adverse consequences of oligopolistic cooperation began with the __________.
The Nash equilibrium in an oligopolistic market is generally __________ for society than the outcome under collusion because the price is __________ marginal cost.
Refer to the accompanying table. If Keisha keeps quiet, Larry will spend __________ years in jail if he confesses and __________ years in jail if he also keeps quiet.