Compare the price and output under oligopoly with that of monopoly and monopolistic competition. How is game theory relevant to oligopoly? Does it

Compare the price and output under oligopoly with that of monopoly and monopolistic competition.

How is game theory relevant to oligopoly? Does it help to explain monopoly? Give reasons for your response.

What does the prisoner's dilemma indicate about the longevity of collusive agreements?

What is a Nash equilibrium? How does it differ from a dominant strategy?

What practices do antitrust laws prohibit?

Which of the following markets are oligopolistic? a. passenger airlines b. cereal c. fast food d. wheat e. golf equipment f. the college bookstore on your campus

4. After teaching a class on game theory, your instructor announces that if every student skips the last question on the next exam, everyone will receive full credit for that question. However, if one or more students answer the last question, all responses will be graded and those who skip the question will get a zero on that question. Will the entire class skip the last question? Explain your response.

Suppose that the marginal cost of mining gold is constant at $300 per ounce and the demand schedule is as follows: Price (per oz.) Quantity (oz.) $1,000 1,000 900 2,000 800 3,000 700 4,000 600 5,000 500 6,000 400 7,000 300 8,000

a. If the number of suppliers is large, what would be the price and quantity?

b. If there is only one supplier, what would be the price and quantity?

c. If there are only two suppliers and they form a cartel, what would be the price and quantity?

d. Suppose that one of the two cartel members in part (c) decides to increase its production by 1,000 ounces while the other member keeps its production constant. What will happen to the revenues of both firms?