The Tit for Tat strategy means cooperation by the 2nd firm if:
1st firm does not cooperate
1st firm cooperates
1st firm collapses
None of the above
Correct Answer :
B. 1st firm cooperates
Related Questions
The point on which the average cost is minimum in a firm, short run average cost curve will also be the minimum cost point on the firms long-run average cost curve. This is true:
Always
Never
When LAC is falling
Only at that level of output when LAC is at its minimum
Supply of a commodity refers to:
Total stock of a commodity in the market
Total production of a commodity during the year
Total production plus total stock of a commodity
Amount of commodity offered for sale at some price at a particular place and time
With the change in the factor prices, the slope of the expansion path will:
Not change
Also change
Increase
Decrease
The demand of the necessities is:
More elastic
Less elastic
Unit elastic
Zero elastic
In cournot model, firms sell:
Superior goods
Inferior goods
Identical goods
Differential goods
If the prices of goods rise then:
The real income of consumer falls
The real income of consumer rises
The real income of a consumer remains constant
The real income of consumer becomes zero
In modern theory, LAC = LMC after the attainment of:
Maximum optimal scale
Average optimal scale
Minimum optimal scale
None of the above
The indirect utility function is a homogeneous function of:
degree one
degree zero
degree less than one
degree greater than one
Which is the first-order condition for the profit of a firm to be maximum?
AC=MR
MC=MR
MR=AR
AC=AR
In monopoly and perfect competition, TC curves are:
Different
Similar
Opposite
None of the above
The Lambda or Langrange Multiplier is a:
Analyst
Catalyst
Pessimist
Optimist
The short run cost curve is U shaped because of:
The operation of increasing cost
The existence of fixed cost
The existence of variable cost
All of the above
Moving along an indifference curve leaves the consumer:
Better off
Worse off
Neither better nor worse off
None of the above
The game theory was basically presented by:
Ricardo
Marshal
Neomann and Morgenstern
Karl Marx
In 1890, Principles of Economics was written by:
Prof. Robbins
Alfred Marshal
Prof. Senior
Adam Smith
The external economies of scale experienced by a firm include the:
Growth of firms processing its waste materials
Development of research bureau serving the industry
Supply of suitable skilled labor in the area
All of the above
Competitors in monopolistic competition have full control over:
The price of their product
Product quality
The shape of the market demand curve
The elasticity of product substitution
Price discrimination is possible:
Only under monopoly situation
Under any market form
Only under monopolistic competition
Only under perfect competition
The Hicksian demand curve includes:
Substitution effect
Income effect
Both substitution and income effect
None of them
The Law of Diminishing Marginal Returns can be explained in terms of:
Economies and diseconomies of production
Indivisibility of factors
Fixity of supply of land
Variable factor productivity
In cournot model, each firm expects a reaction from his rival but the expected reaction is not:
important
materialized
accepted
rejected
Which of the following conditions is met in the long-run equilibrium in monopolistic competition, where the firm is earning only normal profits?
MC =AC and P
MC = AC and P=MR
P =MC and P
MC=MR and P =AR= ATC
Extension (expansion) and contraction of demand are result of:
Change in consumers income
Change in consumers tastes
Change in price
None of the above
The long run average cost curve is:
Cup-shaped
Oval-shaped
Saucer-shaped
Glass-shaped
Average Revenue means:
Per unit revenue received from all the units sold by the producer
Revenue of the units having average size
Total number of units× Revenue per unit
Total revenue × Number of units sold
In monopolistic competition, the customers are attached with one product because of:
Product similarity
Product differentiations
Product inferiority
None of the above
The difference between average cost and average revenue is:
Total profit
Average profit
Net profit
Marginal profit
In Nash Equilibrium:
Each player has a dominant strategy
No players have a dominant strategy
At least one player has a dominant strategy
Players may or may not have dominant strategies
The expansion point is attained by joining:
Similar optimal combinations
Different optimal combinations
Both of them
None of them
In collusive olligopoly, the firms may make:
Open agreements
Secret agreements
Both a and b
None of the above