1. A dominant strategy in an oligopoly game is strategy that is best for a plater ____
A) As long as its competitor follows the same strategy
B) Regardless of the strategy of the other player
C) As long as its competitor follows a different stategy
D) As long as no additional players are allowed to play
E) When both players cooperate
2. Under both perfect competition and monopolistic competition, price equals minimum average total cost in the long run (TRUE/FALSE) ?
3. A natural oligopoly is an oligopoly that can be explained by _____.
A) Zoning regulations
B) Economies of scale
C) Lobbying of government agencies
D) The reputation of existing firms
E) None of these
4. Which of the following is an example of nonprice competition?
A) A firm advertieses to gain new customers
B) Econimic profit attracts entry by new firms
C) Economic loss causes exit of existing firms
D) A firm produces additional units for which marginal revenue exceeds marginal cost
E) A firm cuts back production ini order to increase profit
5. Monopolistic competitors may earn positive economic profit in the short run, but earn zero economic profit in the long run. (TRUE/FALSE)
6. Advertising about superior service is an example of nonprice competition (TRUE/FALSE)
7. Price leadership is generally considered an example of which of the following?
A) Tacit collusion
B) Explixit collusion
C) A tit for tat strategy
D) Uncooperative behavior
E) None of these
8. A market in which there are 100 firms, each with a 1 percent share of the total market, would most likely be considered an oligopoly (TRUE/FALSE)