5 Written questions
5 Matching questions
- Balanced Oligopoly
- Payoff Matrix
- Prisoners' Dilemma
- Brand Multiplication
- a A particular "game" between two captured prisoners that illustrates why cooperation is difficult to maintain even when it is mutually beneficial to do so.
- b The dominate firm in the oligopoly, whose pricing decisions are tacitly followed. The Godfather is the price leader.
- c A table that shows the payoffs that each firm earns from every combination of strategies by the firms.
- d Variations on one good so that a firm can increase market share.
- e An oligopoly in which the sales of the leading (top four) firms are relatively balanced among them.
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 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.
- Any combination of strategies in which each players' strategy is his or her best choice, given the other players' strategies.
- 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.
- 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.
Cartel → A group of firms that collude to limit competition in a market by negotiating and accepting agreed-upon prices and market shares.
Tit-for-Tat Strategy → A pricing strategy in game theory in which firms continue to match each others' pricing strategy.
Unbalanced Oligopoly → An oligopoly in which the sales of the leading (top four) firms are distributed unevenly among them.
Price Leadership → 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.