2. USAEO Microeconomics
Oligopoly And Game Theory — Quiz
Test your understanding of oligopoly and game theory with 5 practice questions.
Practice Questions
Question 1
Which of the following best describes the key characteristic of an oligopoly market structure?
Question 2
In the classic Cournot model of oligopoly, how do firms decide on their output levels?
Question 3
In a two-firm Bertrand model with identical products and constant marginal costs, what is the predicted outcome for the equilibrium price?
Question 4
Consider a duopoly where two firms face the following demand function: $P = 100 - Q$, where $Q = q_1 + q_2$. Each firm has a constant marginal cost of $MC = 20$. In the Cournot equilibrium, what is the output of each firm?
Question 5
Which of the following is an example of a Nash equilibrium in a simple Prisoner’s Dilemma game?