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  3. Liberty ECON 213 Quiz 12 Answers Complete Solutions

Contents

  • 1 Liberty ECON 213 Quiz 12 Answers Complete Solutions
      • 1.0.1 Question 1
      • 1.0.2 Question 2
      • 1.0.3 Question 3
      • 1.0.4 Question 4
      • 1.0.5 Question 5
      • 1.0.6 Question 6
    • 1.1 STATUS
      • 1.1.1 Question 7
      • 1.1.2 Question 8
      • 1.1.3 Question 9
      • 1.1.4 Question 10
      • 1.1.5 Question 11
      • 1.1.6 Question 12
      • 1.1.7 Question 15
      • 1.1.8 Question 16
      • 1.1.9 Question 17
      • 1.1.10 Question 18
      • 1.1.11 Question 19
      • 1.1.12 Question 20

Liberty ECON 213 Quiz 12 Answers Complete Solutions

 

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Question 1

There are four ice cream shops on a small tourist island. The accompanying table shows the quantity of ice cream cones that each firm produces in a typical year and the price that each firm currently charges for each ice cream cone it sells. An economist might suspect __________ collusion occurring in this market where __________ is the price leader and all other firms set price to match the price leader.

Question 2

The practice of setting prices deliberately below __________ costs in an effort to drive a competitor out of the market is known as predatory pricing.

Question 3

Firm A prices its products so low that it drives competitors out of the market. After all of its competitors have been driven out of the market, Firm A raises prices significantly. Which statement best explains how regulation applies to this situation?

Question 4

Like a pure monopoly, an oligopoly is characterized by:

Question 5

A monopolistically competitive market consists of many sellers, an oligopoly consists of __________ seller(s), and a monopoly consists of __________ seller(s).

Question 6

The practice of setting prices deliberately below average variable costs in order to put a rival out of business is known as:

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Question 7

KitNSit, Inc. and Kittysitters, Inc. are two catsitting services in Kent, Ohio. There are no other catsitting services so the market is considered to be a duopoly. According to the kinked demand prices, Kittysitters, Inc. will __________.

Question 8

According to Section 2 of the Sherman Antitrust Act, a person who attempts to monopolize commerce among the several states is guilty of a(n):

Question 9

According to the kinked demand curve theory, the behavior of firms in an oligopoly creates a demand curve that is __________ at prices above the cartel price and __________ at prices below the cartel price.

Question 10

When a market is characterized by mutual interdependence:

Question 11

Assume all markets are in longrun equilibrium. The market quantity supplied in an oligopoly would be __________ the market quantity supplied in a monopoly and __________ the market quantity supplied in a competitive market.

Question 12

In a repeated prisoner’s dilemma, a player that is playing titfortat will:

Question 15

The presence of significant positive __________ externalities can drive small firms out of business or force them to merge with larger competitors.

Question 16

The branch of economics that studies strategic decision making is called:

Question 17

If network externalities exist in an industry, the __________ firm to enter the market is often the one that succeeds in dominating the industry.

Question 18

Legislative efforts to curtail the adverse consequences of oligopolistic cooperation began with the __________.

Question 19

The Nash equilibrium in an oligopolistic market is generally __________ for society than the outcome under collusion because the price is __________ marginal cost.

Question 20

Refer to the accompanying table. If Keisha keeps quiet, Larry will spend __________ years in jail if he confesses and __________ years in jail if he also keeps quiet.

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