5 Written questions
5 Matching questions
- Prisoners' Dilemma
- Balanced Oligopoly
- Brand Multiplication
- Conglomerate Merger
- a Variations on one good so that a firm can increase market share.
- b A combination of two or more companies into one company.
- c A merger of firms in unrelated industries. Example: If Purina Dow Chow merged with Pampers Diaper Company.
- d An oligopoly in which the sales of the leading (top four) firms are relatively balanced among them.
- e A particular "game" between two captured prisoners that illustrates why cooperation is difficult to maintain even when it is mutually beneficial to do so.
5 Multiple choice questions
- A merger between firms who have a buyer/supplier relationship. Example: BFGoodrich merging with rubber plantations.
- The theory that studies decision making in situations in which one player anticipates the reactions of other players to its own actions. Firms are mutually interdendent.
- An oligopoly in which the sales of the leading (top four) firms are distributed unevenly among them.
- A group of firms that collude to limit competition in a market by negotiating and accepting agreed-upon prices and market shares.
- An agreement among firms in a market about quantities to produce or prices to charge in attempts to limit competition.
5 True/False questions
Tit-for-Tat Strategy → A merger between two firms in the same industry. Example: 2004 K-Mart merged with Sears
Nash Equilibrium → Any combination of strategies in which each players' strategy is his or her best choice, given the other players' strategies.
Godfather → The dominate firm in the oligopoly, whose pricing decisions are tacitly followed. The Godfather is the price leader.
Joint Venture → 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.
Mutual Interdependence → 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.