Econ 201 Lecture 8.2a Review: Ch. 11, 12 5-28-09

Econ 201
Lecture 8.2a
Review: Ch. 11, 12
Ch. 12: Oligopoly
#2. Firms in a concentrated industry decide to compete as rivals.
What type of rivalry is best for consumers
What type might be harmful
#4. Mattresses come in only a small number of sizes. How does this
industry standard affect consumers? Better or worse off with
#8 a) is there a dominant strategy
b) is there a Nash equilibrium
c) would collusion alter the outcome
#16 T/F. If an industry has only 4 firms, then CR4 reveals as much
about industry concentration as HHI
Ch. 11 Monopolistic Competition
#1. Why might a firm purposely produce goods
that are of lower quality than its competitors?
#5. If the market for college education were
perfectly competitive, how would it be different
from what it is now?
#9. If a MC firm is able to patent its production
process, but not its product, can it become a
#10. Graph a MC firm in long-run equilibrium. How
would its output level change if it had no market