1. Define oligopoly.
2. Are demand curves easy to identify in oligopoly?
3. What method do economists use to analyze an oligopoly?
4. Define dilemma.
5. What is the Prisoner's Dilemma?
6. What is a cartel?
7. What is collusion?
8. Who is John Nash?
9. What are the two elements of tension in oligopoly?
10. Is OPEC a cartel?
1. Define oligopoly.
ReplyDeleteAn Oligopoly is a market structure in which only a few sellers offer similar or identical products.
2. Are demand curves easy to identify in oligopoly?
No, Demand curves are not obvious, they tend to be kinked in oligopolistic markets .
3. What method do economists use to analyze an oligopoly?
Economists use the game theory study.
4. Define dilemma.
Dilemma is a situation in which a difficult choice has to be made between two or more alternatives, especially ones that are equally undesirable.
5. What is the Prisoner's Dilemma?
The prisoners Dilemma is a particular game between two captured prisoners that illustrates why cooperation is difficult to maintain even when it is mutually beneficial.
6. What is a cartel?
A cartel is a group of firms acting in unison.
7. What is collusion?
Collusion is an agreement among firms in a market about quantities to produce and prices to charge.
8. Who is John Nash?
John Nash is an economic theorist, whose life was portrayed in the book and movie called A Beautiful Mind.
9. What are the two elements of tension in oligopoly?
In an Oligopoly there is a tension between cooperation and self-interest.
10. Is OPEC a cartel?
Yes OPEC is a Cartel.