Answer to Question #52966 in Microeconomics for Yana

Question

MULTIPLE CHOICE
1. Which of the following market structures describes an industry in which a group of firms formally agree to control prices and output of a product?
a. Perfect competition.
b. Monopoly.
c. Oligopoly.
d. Cartel.
e. Monopolistic competition.
2. The purpose of a cartel is to:
a. promote product innovation.
b. increase market competition.
c. act like a monopoly.
d. diversify operations.
e. decrease market concentration.
3. When the player of a game chooses a dominant strategy:
a. it is the best strategy only if other players are cooperative.
b. it always leads to a Nash equilibrium that makes all players equally well off.
c. the game can never reach a Nash equilibrium.
d. it is the best strategy regardless of choices made by other players.

Answer 1

1. d. Cartel.
2. c. act like amonopoly.
3. d. it is the beststrategy regardless of choices made by other players.