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

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Econ 201 Lecture 8.2a

Review: Ch. 11, 12 5-28-09

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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 standard?

#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 2

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 monopolist?

#10. Graph a MC firm in long-run equilibrium. How would its output level change if it had no market power?

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