5 Written questions
5 Matching questions
- Price Discrimination
- Concentration Ratio
- Horizontal Merger
- Conglomerate Merger
- a A combination of two or more companies into one company.
- b A measure of market power - the percentage of all sales that is accounted for by the four or eight largest firms in the market
- c Offering specific goods or services at different prices to different segments of the market. Example: First class versus business class on airlines.
- d A merger of firms in unrelated industries. Example: If Purina Dow Chow merged with Pampers Diaper Company.
- e A merger between two firms in the same industry. Example: 2004 K-Mart merged with Sears
5 Multiple choice questions
- A particular "game" between two captured prisoners that illustrates why cooperation is difficult to maintain even when it is mutually beneficial to do so.
- A group of firms that collude to limit competition in a market by negotiating and accepting agreed-upon prices and market shares.
- Any combination of strategies in which each players' strategy is his or her best choice, given the other players' strategies.
- 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
- A business arrangement in which two or more firms undertake a specific economic activity together. Once the activity is over, the firms go their own way.
5 True/False questions
Brand Multiplication → Variations on one good so that a firm can increase market share.
Godfather → The dominate firm in the oligopoly, whose pricing decisions are tacitly followed. The Godfather is the price leader.
Tit-for-Tat Strategy → A pricing strategy in game theory in which firms continue to match each others' pricing strategy.
Balanced Oligopoly → An oligopoly in which the sales of the leading (top four) firms are distributed unevenly among them.
Game Theory → The dominate firm in the oligopoly, whose pricing decisions are tacitly followed. The Godfather is the price leader.