Question : 81) Tacit collusion in an oligopolistic industry A) occurs when : 1384254

81) Tacit collusion in an oligopolistic industry

A) occurs when firms make an explicit agreement to cooperate.

B) results in a non-cooperative equilibrium.

C) occurs when firms achieve the cooperative outcome without an explicit agreement.

D) results in competitive behaviour.

E) is a form of predatory pricing.

82) Explicit collusion in an oligopolistic industry

A) occurs when firms make an explicit agreement to cooperate.

B) results in a non-cooperative equilibrium.

C) occurs when firms achieve the cooperative outcome without an explicit agreement.

D) results in competitive behaviour.

E) is a form of predatory pricing.

83) Suppose Proctor and Gamble introduces a new brand of laundry detergent.  Brand proliferation is an example of

A) explicit collusion.

B) tacit collusion.

C) a Nash equilibrium.

D) a firm-created barrier to entry.

E) a cooperative outcome.

84) If joint profits are to be maximized in an oligopolistic industry with a homogeneous product, the firms

A) can produce whatever output they want at the agreed-upon price.

B) need to determine the share of output each firm will produce.

C) must form a cartel in order to be legal.

D) have no individual incentive to cheat on the agreement.

E) None of the above — differentiated products are required for joint-profit maximization in oligopoly.

85) An ineffective means of discouraging the entry of new firms by existing firms in an oligopolistic industry is

A) producing a wide range of brands of their products.

B) carrying out industrial sabotage.

C) spending heavily on advertising.

D) raising their prices.

E) seeking greater patent protection.

86) “Brand proliferation” in an oligopolistic industry

A) allows easier entry to a new entrant with small sales.

B) can shift the average total cost curve down and raise the overall minimum scale of operation.

C) allows new entrants to the industry to gain significant market share.

D) will generally reduce the expected market share of new entrants to the industry.

E) allows firms to cooperate to maximize their joint profits.

87) “Brand proliferation” is an example of

A) an economy of scale.

B) a firm-created barrier to entry.

C) an absolute cost advantage.

D) collusive behaviour.

E) predatory pricing.

88) Advertising by existing firms in an oligopolistic industry

A) will increase the expected market share of new entrants to the industry.

B) can be an effective entry barrier to potential entrants to the industry.

C) only exists where natural entry barriers are weak.

D) allows easy entry to a new entrant with small sales.

E) maximizes joint profits for firms in the industry.

89) An oligopolistic firm often detects a change in the demand for its product by first observing a change in

A) average cost.

B) market price.

C) marginal revenue.

D) marginal cost.

E) sales.

90) Which of the following industries in Canada can best be thought of as oligopolies?

1) breweries

2) women’s clothing retailers

3) automobile manufacturers

A) 1 only

B) 2 only

C) 3 only

D) 1 and 3 only

E) 1, 2, and 3