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Tests, Surveys, and Pools Tests
Test Canvas : Self-Test Quiz - Chapter 14
Microeconom ics, 3e
Test Canvas: Self-Test Quiz - Chapter 14
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Total Questions 20
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1. Multiple Choice: Which of the following statements abo...
Question Which of the following statements about oligopolies is not correct?
Answer
There are only a few firms in the industry.
2. Multiple Choice: The U.S. baseball glove industry is a...
Question The U.S. baseball glove industry is an oligopoly. This means that glove suppliers
face a ________________ than a monopoly glove supplier would:
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Points: 1
Points: 1
3. Multiple Choice: In the classic prisoners' dilemma wit...
Question In the classic prisoners' dilemma with two accomplices in crime, the Nash
equilibrium outcome is:
Answer
neither individual confesses.
4. Multiple Choice: In the classic prisoners' dilemma wit...
Question In the classic prisoners' dilemma with two accomplices in crime, the dominant
strategy for each individual is to:
Points: 1
Points: 1
5. Multiple Choice: In using a prisoners' dilemma game to...
Question In using a prisoners' dilemma game to model the behavior of firms within an
oligopoly, we are assuming that:
6. Multiple Choice: For competing firms, a(n) ___________...
Question For competing firms, a(n) ____________________ strategy is the strategy that is
in a firm's best interest, ________________ the action taken by the other firm:
7. Multiple Choice: The 1890 Sherman Antitrust Act makes ...
Question The 1890 Sherman Antitrust Act makes it illegal for firms to:
Points: 1
Points: 1
Points: 1
8. Multiple Choice: When firms engage in tacit collusion,...
Question When firms engage in tacit collusion, they:
Answer
meet periodically to establish production quotas.
9. Multiple Choice: A firm that engages in strategic beha...
Question A firm that engages in strategic behavior:
Answer
fits the definition of a natural monopoly.
10. Multiple Choice: For the members of OPEC, it is in the...
Question For the members of OPEC, it is in their combined interests to:
Points: 1
Points: 1
Points: 1
11. Multiple Choice: The model in which one firm sets its ...
Question The model in which one firm sets its price first, and others in the industry charge
the same price is known as:
Answer
the Nash equilibrium.
12. Multiple Choice: Game theory is the:
Question Game theory is the:
Answer
branch of economics that looks at political motives.
Points: 1
Points: 1
13. Multiple Choice: The reason why game theory is NOT app...
Question The reason why game theory is NOT applied to perfect competition is that:
Answer
it is difficult to define the pay-offs that motivate perfectly competitive firms.
we cannot define a dominant strategy for perfect competition.
14. Multiple Choice: A price war is evidence of a:
Question A price war is evidence of a:
Answer
perfectly competitive market.
15. Multiple Choice: Which of the following is not true?
Question Which of the following is not true?
Answer Tacit collusion among firms is the normal state of oligopoly.
Points: 1
Points: 1
Points: 1
16. Multiple Choice: The outcome in a Nash equilibrium:
Question The outcome in a Nash equilibrium:
Answer
maximizes total well-being of all players .
17. Multiple Choice: Which word best characterizes the int...
Question Which word best characterizes the interaction among firms in any oligopoly?
Answer
cooperation
18. Multiple Choice: Successful tacit collusion is most li...
Question
Points: 1
Points: 1
Points: 1
Successful tacit collusion is most likely to arise among oligopolistic firms when
they:
Answer
are all the same size.
19. Multiple Choice: Antitrust policy is designed to:
Question Antitrust policy is designed to:
20. Multiple Choice: Why is collusion more likely in cases...
Question Why is collusion more likely in cases of oligopoly than in perfect competition?
Points: 1
Points: 1
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