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Exam 24: Oligopoly

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Question 51

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Of all the cars made in the United States,General Motors makes only ______ percent of them.

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Question 52

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An industry with a concentration ratio of 100 would have ___________ firms.

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Question 53

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The price charged by an oligopolist who has a kinked demand curve would be _______ than the price charged by a perfect competitor.

The kinked demand curve depicts

$~~~~~{ \text { Industry } \mathbf { X } } ~~~~~~~~~~~~~ { \text { Industry } \mathbf { Y } } \\\begin{array} { c c c c } & \text { Market }& & { \text { Market } } \\\text { Firm } &\text { Share } & \text { Firm } & \text { Share } \\1 & .40 & 1 & .30 \\2 & .20 & 2 & .30 \\3 & .10 & 3 & .30 \\4 & .10 & 4 & .05 \\5 & .10 & 5 & .03 \\6 & .10 & 6 & .02\end{array}$ -Which statement is true?

_____ is a decision tool that helps take into account the anticipated reactions of competitors.

Statement I.Collusion is most likely to succeed when there are many firms in the industry. Statement II.Firms in an industry that divide a market by territory make price and output decisions similar to the way a monopolist would operate.

An industry with a Herfindahl-Hirschman index of 100 would have at least ______ firm(s).

$\begin{array}{ccccc}&&{ Total }&{Marginal}&{ Total } & &{ Marginal }\\\text { Output } & \text { Price } & \text { Revenue } & \text { Revenue } & \text { Cost } &{ ATC}&{ Cost }\\1 & \$ 52 & \$ & \$ & \$ 40 &\$&\$\\2 & 50 & & & 70 \\3 & 48 & & &90 \\4 & 46 & & &115 \\5 & 44 & & &150 \\6 & 40 & & &210 \\7 & 36 & & &308\end{array}$ -Fill in the table.

Oligopolies are industries containing only a few large firms

Which of the following represents an illegal control of prices?

Given the information in the table below,calculate (a)the concentration ratio;and (b)the Herfindahl-Hirschman index. $\begin{array}{l}\text { Percent of }\\\begin{array} { c c } \text { Firm } & \text { Sales } \\1 & 26 \\2 & 20 \\3 & 14 \\4 & 13 \\5 & 10 \\6 & 7 \\7 & 5 \\8 & 2 \\9 & 2 \\10 & \underline{1} \\& 100 \%\end{array}\end{array}$

If one cigarette company raises its prices and the next day all the other companies in the industry raise their prices by the same amount,this industry would be using _________ to set prices.

The price charged by this profit-maximizing firm is $____ and its output is ___ (assume marginal cost is MC1) .

The cutthroat competitor is on the opposite end of the competitive spectrum from the _________________.

Which one of these firms would be an oligopolist?

The analysis used for oligopolistic firms is similar to that used for monopolies in all of the following ways except

The most competitive industry is one that has

A low concentration ratio would most likely indicate

A low concentration ratio would most likely indicate that the industry resembles the behavior of a (n)