Which of the following is NOT a barrier to entry A Economies of scale B

Which of the following is not a barrier to entry a

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70) Which of the following is NOT a barrier to entry? A) Economies of scale B) Industry lowest pricing C) Ownership of a key input D) Government imposed restrictions Answer: B Diff: 2 Page Ref: 417 SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question. 71) What are three typical barriers to entry found in oligopoly market structures? 72) What is a duopoly? 73) Besides competition from existing firms, what other competitive forces do firms face? 74) How can economies of scale in production result in an oligopoly? Answer: If there are significant economies of scale as a firm increases in size so that only a few firms are needed to meet market demand, an oligopoly may develop. Diff: 2 Page Ref: 417
75) What is a Nash equilibrium? 76) When should a business use a decision tree? 77) What strategy should firms use to compete with large firms like Walmart? 78) What is collusion and is it legal? Answer: An agreement among firms to charge the same price or otherwise not compete, it is illegal in the U.S. Diff: 2 Page Ref: 420 79) What is an example of a government-imposed barrier to entry? 80) What incentives do individual members of a cartel have and why? 81) What does a payoff matrix show? 82) What type of equilibrium does a prisoners' dilemma result in? Answer: A noncooperative equilibrium Diff: 2 Page Ref: 422 83) What level of four-firm concentration ratio indicates an oligopoly market? 84) What are the three key characteristics of game theory? 85) How does the demand curve for an oligopoly firm differ from the demand curves for firms in competitive market structures?
86) Assume firm A and firm B are competing for customers and if they both advertise, they would each earn $30 million in profit. If neither advertises, they each earn $50 million in profits. But if one advertises and the other doesn't, the firm advertising earns $40 million in profit while the other earns $20 million in profit. What is each firm's dominant strategy and the result of this choice? Answer: Each is driven to advertise and earn $30 million in profits. Diff: 3 Page Ref: 423 87) If deciding whether to build a large or small store, Walmart finds the rate of return it will experience is the same regardless or the existence of competition in the market, what should Walmart do?

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