5 Written questions
5 Matching questions
- Conglomerate Merger
- Concentration Ratio
- Payoff Matrix
- a A group of firms that collude to limit competition in a market by negotiating and accepting agreed-upon prices and market shares.
- b A merger of firms in unrelated industries. Example: If Purina Dow Chow merged with Pampers Diaper Company.
- c A table that shows the payoffs that each firm earns from every combination of strategies by the firms.
- d An agreement among firms in a market about quantities to produce or prices to charge in attempts to limit competition.
- e A measure of market power - the percentage of all sales that is accounted for by the four or eight largest firms in the market
5 Multiple choice questions
- Offering specific goods or services at different prices to different segments of the market. Example: First class versus business class on airlines.
- The demand curve faced by an oligopolist. The curve is more elastic when the firm raises its price than when it lowers its price.
- A pricing strategy in game theory in which firms continue to match each others' pricing strategy.
- The situation that exists when two or more groups need each other and must depend on each other to accomplish a goal that is important to each of them
- Any combination of strategies in which each players' strategy is his or her best choice, given the other players' strategies.
5 True/False questions
Balanced Oligopoly → An oligopoly in which the sales of the leading (top four) firms are distributed unevenly among them.
Joint Venture → The dominate firm in the oligopoly, whose pricing decisions are tacitly followed. The Godfather is the price leader.
Vertical Merger → A merger between two firms in the same industry. Example: 2004 K-Mart merged with Sears
Godfather → The dominate firm in the oligopoly, whose pricing decisions are tacitly followed. The Godfather is the price leader.
Brand Multiplication → Offering specific goods or services at different prices to different segments of the market. Example: First class versus business class on airlines.