# 26 Competition and Game Theory Quiz

What type of market structure is characterized by thousands of producers, identical products, and low barriers to entry?

• Perfect Competition

• Oligopoly

• Monopoly

• Monopolistic Competition

Which market structure is dominated by a few large companies with high barriers to entry and similar but not identical products?

• Monopolistic Competition

• Perfect Competition

• Monopoly

• Oligopoly

What is the main form of competition in oligopolies that involves competing without changing the price?

• Cartel formation

• Collusion

• Non-price competition

• Price competition

What is the international cartel made up of oil-producing countries that manipulate oil supplies to control prices?

• UNICEF

• NATO

• OPEC

• EU

What is the term for when one company changes its prices, and its competitors have to decide if they’re going to follow suit?

• Monopoly pricing

• Collusion

• Price leadership

• Perfect competition

What classic game theory scenario involves two individuals making decisions without being able to communicate, resulting in a suboptimal outcome?

• The prisoner's dilemma

• The Nash equilibrium

• The payoff matrix

• The dominant strategy

What is the term for the best available outcome for a company, regardless of the actions of its competitors?

• Dominant strategy

• Payoff matrix

• Collusion

• Price leadership

What is the main goal of non-price competition in oligopolies?

• To form a cartel

• To differentiate products

• To decrease quality

• To increase prices

What is the main reason why monopolies and perfectly competitive markets do not run advertisements?

• To avoid competition

• To differentiate products

• To drive up prices

• To increase costs

What is the main reason why collusion and cartels are often unstable in oligopolies?

• They are illegal

• They require strict enforcement

• There is no dominant strategy

• There is an incentive to cheat