1. Which of the following likely provides the most support for the oligopolistic
ID: 1166154 • Letter: 1
Question
1. Which of the following likely provides the most support for the oligopolistic nature of the breakfast cereal industry? 1) economies of scale 2) zoning regulations 3) import duties 4) the reputation of existing brands 5) excess capacity
2. Which of the following might cause a market to be oligopolistically competitive? 1) economies of scale. 2) zoning regulations. 3) reputation of existing brands. 4) import quotas. 5) all of the above.
3. The normal form of a game is used when... 1) no player has a dominant strategy. 2) the extensive form yields no Nash Equilibrium 3) the players move simultaneously 4) the players move sequentially 5) the game is never repeated
4. Game theory is used to analyze behavior in which type of market structure? 1) perfect competition. 2) monopoly. 3) monopolistic competition. 4) oligopoly 5) none of the above.
Explanation / Answer
1. Oligopolistic nature of the breakfast cereal industry comprises interdependence of actions among the competitors while deriving price and output to produce. The market concentration depends on the reputation of the existing brands.
the correct option (4)
2.
An oligopolistic market consists of a few numbers of large firms selling identical or differentiated goods and have market power based on product quality and advertising etc. Economies of scale, zoning regulation, and import quotas also cause a market to be oligopolistic.
the correct option is (5)
3.
A normal form of a game is used when the players are moving simultaneously whereas tree form is used for extensive games.
the correct option is (3)
4.
Game theory is used to analyze the behavior of firms in the oligopolistic market for example for a two-firm case, duopoly game is played in the form of Cournot, Bertrand or Stackelberg game and so on.
the correct option is (4)
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