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Define oligopoly. Illustrate scale-economy barriers to entry.
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Explain the entry dilemma in oligopolistic industries.
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What kinds of industries are characterized by large capital requirements barriers to entry?
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Identify three sources of absolute-cost barriers to entry.
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How can product differentiation be a barrier to entry?
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Why are concentration ratios so important in the study of oligopoly?
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Distinguish between cooperative versus non-cooperative behavior.
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What is the difference between explicit versus tacit collusion? Which one is illegal in the United States?
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What are some ways that executives tacitly collude?
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Describe the Cartel Model and explain the pricing rule.
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Explain and provide examples of the Price Leadership model.
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Illustrate the Kinked Demand Curve model.
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What is the guiding philosophy of game theory?
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What does the Prisoner’s Dilemma game demonstrate? Explain how it works.
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Apply the Prisoner’s Dilemma to the case of duopoly.
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What is a Nash Equilibrium? Why is this concept important?
