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Home / Questions / A detail from the text: OPEC is an acronym for the world’s most famous cartel. The

A detail from the text: OPEC is an acronym for the world’s most famous cartel. The

   A detail from the text: OPEC is an acronym for the world’s most famous cartel. The
                            acronym stands for

a.Oil and Petroleum Export Cartel

b.Organization of Producers of Exported Crude

c.Organization of Production and Exchange Countries

d.Organization of Petroleum Exporting Countries

e.Oil and Petroleum Extraction Countries

142.              Oligopoly pricing differs from pricing in other market structures. The essential
                            difference is

a.relatively high fixed costs associated with oligopoly

b.brand loyalty of consumers

c.use and effect of advertising

d.difference between concentration ratios and HHI

e.mutual interdependence of firms

143.              The application of game theory to economics allows us to understand firm behavior in
                            some forms of oligopoly. Game theory suggests that in a two-firm industry, each firm
                            will

a.avoid pricing high when the other prices low

b.select high prices and defend that selection because, in the long run, their profits are
higher than if they competed by lowering prices

c.end up mistaking the other’s intentions, which results in low prices and low profit for
both in the long run

d.end up colluding with the other to form a cartel

e.agree with the other not to allow other firms to enter the industry

Dec 11 2019 View more View Less

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