Question

question 1 (1.5 points) saved
oligopolies produce more when they collude than when they do not.
true
false
question 2 (1.5 points) saved
for a firm, strategic interactions with other firms in the market become more important as the number of firms in the market becomes larger.
true
false
question 3 (1.5 points) saved
a nash equilibrium always results in the highest total profit for the firms in an oligopoly market.
true
false
question 4 (1.5 points) saved
any market that is served by an oligopoly is in effect served by a monopoly
true
false
question 5 (1.5 points) saved
a group of firms that collude is called a cartel.
true
false

Explanation:

Question 1

When oligopolies collude, they act like a monopoly and restrict output to maximize joint profit, so they produce less than when competing. Thus the statement is false.

As the number of firms in a market (e.g., oligopoly) increases, strategic interactions become less important (more like perfect competition). So the statement is false.

Nash Equilibrium in oligopoly (e.g., prisoners' dilemma - like situations) often leads to lower total profit than if firms collude. So it doesn't always give the highest total profit. The statement is false.

Answer:

False

Question 2