Market failure or inefficient consumption will take place in the market structures EXCEPT for
A) perfect competition.
B) monopolistic competition.
C) oligopoly.
D) monopoly.
A
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What effect does a price hike have on the total revenue of the producers?
What will be an ideal response?
Which of the following firms is not able to practice price discrimination?
A) commercial airlines B) the largest wheat farmer in Nebraska C) land-line telephone companies D) movie theaters
The dominant-strategy solution implies that each firm
a. ignores the reactions of competitors b. colludes with competitors to maximize industry profits c. ignores the decisions of the other firms d. takes all potential bits of information into consideration before making a decision e. selects the optimal solution to a game
The payoff matrix below shows the daily profit for two firms, Row Restaurant and Column Cafe, for two different strategies, publishing coupons in the student paper and not publishing coupons in the student paper. 
The payoffs of this game are such that:
A. if Row Restaurant expects Column Cafe to choose its dominant strategy, then Row Restaurant should choose its dominated strategy. B. an agreement not to publish coupons would be easy to maintain because neither firm has an incentive to defect. C. both firms would benefit from a law that made publishing coupons illegal. D. profit at each firm is higher when they both follow their dominant strategy than when they both follow their dominated strategy.