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# Microeconomics Study Set 29

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## Quiz 11 : Imperfect Competition

The theory of oligopoly suggests that
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Multiple Choice

E

In imperfectly competitive markets, "administered" prices usually change than prices in perfectly competitive markets, because _ .
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C

The table below shows the market shares for the only firms in a domestic cement market. -Refer to Table 11- 1. The four- firm concentration ratio in this industry is percent.
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C

An imperfectly competitive industry is often allocatively inefficient when compared to the performance of a competitive industry, because imperfect competitors
Multiple Choice
By calculating a concentration ratio, economists measure the
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Suppose there are only two firms in an industry. If they each set a high price, they each earn $5000. If they each set a low price, they each earn$2500. If one firm sets a low price while the other sets a high price, the low- price firm earns $7000 while the high- price firm earns$1000. Does a prisoners' dilemma exist?
Multiple Choice
The table below shows the market shares for the only firms in a domestic cement market. -Refer to Table 11- 1. The eight- firm concentration ratio in this industry is percent.
Multiple Choice
In which market structure are price fluctuations most common?
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"Brand proliferation" is an example of
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Explicit collusion in an oligopolistic industry
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The diagram below shows demand and cost curves for a monopolistically competitive firm. FIGURE 11- 3 -Refer to Figure 11- 3. In the long run, a monopolistically competitive firm will
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A good example of a monopolistically competitive firm is 1) The Gap clothing store. 2) Dairy Queen. 3) a Prince Edward Island potato farmer.
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Which of the following products is best considered a differentiated product?
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An example of a Canadian industry composed of a few large firms is
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The diagram below shows demand and cost curves for a monopolistically competitive firm. FIGURE 11- 3 -Refer to Figure 11- 3. A monopolistically competitive firm is allocatively inefficient because in the long- run equilibrium
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A Nash equilibrium
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Consider an example of the prisoner's dilemma where 2 firms are making sealed bids on a contract and each firm is allowed to bid either $100 or$180. If both firms bid the same price, the job is shared equally and each firm earns half the value of its bid. Otherwise the lowest bidder wins the contract and receives the full value of its bid (and the other bidder earns zero). The cooperative outcome in this situation is