5Which of the following is not a characteristic of an oligopolistic industry? Su
ID: 1157024 • Letter: 5
Question
5Which of the following is not a characteristic of an oligopolistic industry?
Substantial barriers to entry.
The output produced by the firms in the industry may be homogeneous or differentiated.
A small number of large firms.
One dominant firm and low entry barriers.
6Which of the following is not a characteristic of an oligopolistic industry?
Substantial barriers to entry.
The output produced by the firms in the industry may be homogeneous or differentiated.
A small number of large firms.
One dominant firm and low entry barriers.
7The dominant strategy for each of the players in the prisoner's dilemma game does not yield the optimal outcome for each player because:
each player is misinformed about the decision that has been made by the other player.
the players do not understand the consequences of each of the choices they can make.
the two players are not allowed to communicate or otherwise cooperate with each other.
each player fails to consider how the other player might act.
8In game theory, a Nash equilibrium is defined as:
the dominant strategy of each player.
a set of strategies for which all players are choosing their best strategy, given the actions of the other players.
the set of strategies that result in the maximum payoff to each player.
the set of strategies chosen when the players in a game can cooperate with each other.
Substantial barriers to entry.
The output produced by the firms in the industry may be homogeneous or differentiated.
A small number of large firms.
One dominant firm and low entry barriers.
Explanation / Answer
5)
There are few firms in oligopolistic market. These firms are large firms. There may be one dominant firm but entry barriers are very strong.
Hence right answer is “ one dominant firm and low entry barriers”
6)
This is repeated question:
Right answer is “ one dominant firm and low entry barrier”
7)
Right answer is “each player fails to consider how the other player might act.”
In prisoner dilemma, participants do not have trust in each other and try to outwit other by going away with strategy. Hence both land up at lower profit zone.
8)
Right answer is :
a set of strategies for which all players are choosing their best strategy, given the actions of the other players.
Nash Equilibrium is best course of action of a player provided strategy of other player is given.
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