sq__11 - Sample Quiz #11 Ec 201 Michigan State University...

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Sample Quiz #11 Ec 201 Spring, 2009 Michigan State University L. Martin I. Multiple choice 1. A group of firms seeking to coordinate their price and output decisions to maximize group profits is called an a. oligopoly; b. monopoly; c. cartel;* d. monopsony; e. monopolistically competitive industry. 2. Natural monopolies are characterized by a. high marginal cost and low fixed cost; b. high fixed cost and low marginal cost;* c. high average cost and low marginal cost; d. low average cost and high marginal cost; e. constant cost. 3. Suppose that firms in an oligopoly promise to charge the monopoly price and share the market. Furthermore, they promise to continue monopoly pricing as long as all firms do similarly. If lower prices are observed, the firms promise to revert to aggressive price competition. This implicit agreement is called a a. prisoner’s dilemma game; b. battle of the sexes game; c. trigger strategy;* d. natural monopoly; e. barrier to entry. 4.
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This note was uploaded on 10/17/2011 for the course EC 201 taught by Professor Haider during the Spring '10 term at Michigan State University.

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sq__11 - Sample Quiz #11 Ec 201 Michigan State University...

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