A. Each individual firm profit maximizes
B. There may be an incentive to cheat
C. The industry as a whole is loss making
D. There is no need to police agreements
Related Mcqs:
- In Game Theory ?
A. Firms are assumed to act independently
B. Firms are assumed to cooperate with each other
C. Firms collude as part of cartel
D. Firms consider the actions of others before deciding what to do - Firms in oligopoly are likely to ?
A. Invest heavily in branding
B. Act independently of other firms
C. Try to differentiate its products
D. Try to be a price maker - The market for hand tools (such as hammers and screwdrivers) is dominated by Draper Stanley, and Craftsman This market is best described as ?
A. monopolistically competitive
B. a monopoly
C. an oligopoly
D. competitive - Collusion is difficult for an oligopoly to maintain ?
A. all of these answers
B. if additional firms enter of the oligopoly
C. because antitrust laws (also known as competition laws) make collusion illegal
D. because, in the case of oligopoly self-interest is in conflict with cooperation. - Suppose that ABC publishing sells an economics textbook and accompanying study guide. Raheel is willing to pay Rs75 for the text and Rs15 for the study guide. Mariam is willing to spend Rs60 for the text and Rs25 for the study guide. Suppose both the book and study guide have a zero marginal cost of study production. If ABC publishing engages in tying the two products its best strategy is to charge a combined price of ?
A. Rs 60
B. Rs 90
C. Rs 85
D. Rs 75 - Laws that make it illegal for firms to conspire to raise prices or reduce production are known as ?
A. antimonopoly laws
B. all of these answers
C. anti-collusion laws
D. pro-competition laws
E. antitrust laws - A model of Game theory of oligopoly is known as the ?
A. Prisoner’s Dilemma
B. Monopoly Cell
C. Jailhouses Sentences
D. Jury Box - In a cartel ?
A. Firms compete against each other
B. Price wars are common
C. Firms use price to win market share from competitors
D. Firms collude - A market structure in which many firms sell products that are similar but not identical is known as ?
A. monopolistic competition
B. monopoly
C. perfect competition
D. oligopoly - Suppose that ABC publishing sells an economics textbook and accompanying study guide. Raheel is willing to pay Rs75 for the text and Rs15 for the study guide. Mariam is willing to spend Rs60 for the text and Rs25 for the study guide. Suppose both the book and study guide have a zero-marginal cost of study production. If ABC publishing charges separate price for both products its best strategy is to charge price that when combined, total ?
A. Rs 85
B. Rs 75
C. Rs 80
D. Rs 60
