5 Written questions
5 Matching questions
- Nash Equilibrium
- Payoff Matrix
- Tit-for-Tat Strategy
- Price Leadership
- a A pricing strategy in game theory in which firms continue to match each others' pricing strategy.
- b A group of firms that collude to limit competition in a market by negotiating and accepting agreed-upon prices and market shares.
- c Any combination of strategies in which each players' strategy is his or her best choice, given the other players' strategies.
- d A firm whose price decisions are tacitly accepted and followed by others in the industry.
- e A table that shows the payoffs that each firm earns from every combination of strategies by the firms.
5 Multiple choice questions
- A measure of market power - the percentage of all sales that is accounted for by the four or eight largest firms in the market
- 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
- Variations on one good so that a firm can increase market share.
- An oligopoly in which the sales of the leading (top four) firms are relatively balanced among them.
- An agreement among firms in a market about quantities to produce or prices to charge in attempts to limit competition.
5 True/False questions
Merger → A combination of two or more companies into one company.
Unbalanced Oligopoly → An oligopoly in which the sales of the leading (top four) firms are distributed unevenly among them.
Price Discrimination → Variations on one good so that a firm can increase market share.
Conglomerate Merger → A merger of firms in unrelated industries. Example: If Purina Dow Chow merged with Pampers Diaper Company.
Horizontal Merger → A merger between firms who have a buyer/supplier relationship. Example: BFGoodrich merging with rubber plantations.