The Kinked Demand curve theory assumes ?

A. Firms cooperate
B. Firms act as part of cartel
C. Firms are competitive
D. Firms are not profit maximisers

In the Kinked demand curve theory ?

A. There is a kink in the marginal cost curve
B. Demand is price inelastic
C. Demand is price elastic
D. Non-price competition is likely

In a cartel ?

A. Firms compete against each other
B. Price wars are common
C. Firms use price to win market share from competitors
D. Firms collude

When a oligopolist individually chooses its level of production to maximize its profits it charges a price that is ?

A. More than the price charged by either monopoly or a competitive market
B. Less than the price charged by either monopoly or a competitive market
C. More than the price charged by a monopoly and less then the price charged by a competitive market
D. Less than the price charged by a monopoly and more than the price charged by a competitive market

A situation in which oligopolists interacting with one another each choose their best strategy given the strategies that all the other oligopolists have chosen is known as a ?

A. Nash equilibrium
B. Dominant strategy.
C. Cartel
D. Collusion solution

Collusion is difficult for an oligopoly to maintain ?

A. All of these answers
B. If additional firms enter of the oligopoly
C. Because antitrust laws (also known as competition laws) make collusion illegal
D. Because, in the case of oligopoly self-interest is in conflict with cooperation.

Firms in oligopoly are likely to ?

A. Invest heavily in branding
B. Act independently of other firms
C. Try to differentiate its products
D. Try to be a price maker

In cartels ?

A. Each individual firm profit maximizes
B. There may be an incentive to cheat
C. The industry as a whole is loss making
D. There is no need to police agreements

The market for hand tools (such as hammers and screwdrivers) is dominated by Draper Stanley, and Craftsman This market is best described as ?

A. Monopolistically competitive
B. A monopoly
C. An oligopoly
D. Competitive

If oligopolists engage in collusion and successfully from a cartel, the market outcome is ?

A. The same as if it were served by competitive firms.
B. Efficient because cooperation improves efficiency
C. The same as if it were served by a monopoly.
D. Known as a nash equilibrium