Microeconomics Final Exam - MASTER SHEET - 1. Firms in...

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1.Firms in industries that have competitors but, at the same time, do not face so much competitionthat they are price takers, are operating in either a(n)a.monopoly or monopolistically competitive market.b.monopolistically competitive or perfectly competitive market.c.oligopoly or monopoly market.d.oligopoly or monopolistically competitive market.
2.As a group, oligopolists are always better-off collectively if they
3.Because each oligopolist cares about its own profit rather than the collective profit of their industry
4.Oligopolists have the
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Chapter 4 / Exercise 4
Microeconomics: Private and Public Choice
Gwartney/Stroup/Sobel/Macpherson
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5.Cartels are often short-lived becausea.laws often prohibit explicit collusive agreements among competitors.b.self-interest often conflicts with cooperation.c.it is difficult to enforce agreements reached by cartels.d.All of the above are correct.
6.As the number of firms in an oligopoly grows larger, price and output in that market approach
7.Two firms are suspected of dumping toxic chemicals at a location unknown to the governmentwho will be unable to find the site unless one of the firms reveals it. Each firm has been presented withan opportunity to lower their liability in the suit if they reveal the site to the government.According to this decision box, if both firms follow a dominant strategy, the losses of Firm A and Firm Brespectively will be
8.According to this decision box, which of the following is the dominant strategies for the firms?

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Microeconomics: Private and Public Choice
The document you are viewing contains questions related to this textbook.
Chapter 4 / Exercise 4
Microeconomics: Private and Public Choice
Gwartney/Stroup/Sobel/Macpherson
Expert Verified

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