chapter13_practice

chapter13_practice - Econ 301 Ecn 100 Practice Problems on...

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Econ 301 Practice Problems on Oligopoly Pricing and Strategy MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) In a sense, a cartel is self - destructive because A) it reduces consumer surplus. B) it sets price above marginal cost. C) each cartel member earns economic proFt. D) each cartel member has the incentive to cheat on the cartel. 1) 2) Which of the following conditions can help prolong the life of a cartel? A) There are only a few Frms in the market and they all belong to the cartel. B) The cartel has no ability to punish members who cheat on the cartel. C) It is difFcult to know what price any cartel member is actually charging. D) There are many Frms in the market that are not members of the cartel. 2) 3) The Cournot Model of Oligopoly assumes that A) Frms make their decisions simultaneously. B) Frms decide what quantity to produce. C) Frms
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This note was uploaded on 04/10/2012 for the course ECN 100B taught by Professor Jamesbushnell during the Fall '11 term at UC Davis.

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chapter13_practice - Econ 301 Ecn 100 Practice Problems on...

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