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If a monopolistically competitive firm is earning profits in the short run, then

ID: 1091225 • Letter: I

Question

If a monopolistically competitive firm is earning profits in the short run, then in the long run the behavior of competing firms

will cause the firm's supply curve to shift to the left.

will cause the firm's supply curve to shift to the right.

will cause the firm's demand curve to shift to the left.

will cause the firm's demand curve to shift to the right.

1 points   

Question 6

If a firm has a reputation for engaging in destructive price wars, then its rivals will be less likely to engage in price competition. The firm's reputation represents a

backward induction.

prisoners' dilemma.

zero-sum game.

credible threat.

In game theory, a dominant strategy refers to a choice

that is the best response to the strategy selected by another player.

that is the best response regardless of the strategy selected by another player.

that results in the player receiving a higher payoff than any other players.

All of the above are correct.

1 points   

Question 21

In repeated games, a strategy that involves attacking players that attack you and cooperating with players that cooperate with you is a

dominant strategy.

tit-for-tat strategy.

prisoners' dilemma.

Nash equilibrium.

Which of the following is an oligopoly model where firms assume that their rivals will match price cuts but not price increases?

The kinked demand curve model

The Cournot model

The price leadership model

The Bertrand model

will cause the firm's supply curve to shift to the left.

will cause the firm's supply curve to shift to the right.

will cause the firm's demand curve to shift to the left.

will cause the firm's demand curve to shift to the right.

Explanation / Answer

If a monopolistically competitive firm is earning profits in the short run, then in the long run the behavior of competing firms

will cause the firm's supply curve to shift to the left.

will cause the firm's supply curve to shift to the right.

will cause the firm's demand curve to shift to the left.

will cause the firm's demand curve to shift to the right.

1 points   

Question 6

If a firm has a reputation for engaging in destructive price wars, then its rivals will be less likely to engage in price competition. The firm's reputation represents a

backward induction.

prisoners' dilemma.

zero-sum game.

credible threat.

In game theory, a dominant strategy refers to a choice

that is the best response to the strategy selected by another player.

that is the best response regardless of the strategy selected by another player.

that results in the player receiving a higher payoff than any other players.

All of the above are correct.

1 points   

Question 21

In repeated games, a strategy that involves attacking players that attack you and cooperating with players that cooperate with you is a

dominant strategy.

tit-for-tat strategy.

prisoners' dilemma.

Nash equilibrium.

Which of the following is an oligopoly model where firms assume that their rivals will match price cuts but not price increases?

The kinked demand curve model

The Cournot model

The price leadership model

The Bertrand model

will cause the firm's supply curve to shift to the left.

will cause the firm's supply curve to shift to the right.

will cause the firm's demand curve to shift to the left.

will cause the firm's demand curve to shift to the right.

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