Oligopoly & entry deterrence

I have marked (at the end of the Question) what I believe to be the correct answers. I just need some justification and reasons if I am wrong and answers for the NOT SURE questions: 1. What is the most important characteristic of oligopoly? ??Not Sure a. firms have market power b. product differentiation c. barriers to entry d. interdependence of profits e. none of the above 2. Which of the following methods do oligopolies use to compete for sales? ??Not Sure a. price competition b. advertising competition c. price leadership competition d. both a and b e. all of the above 3. Interdependence ... click for more

nash equilibrium & oligopolists

I have a study group to attend and need verification (and reasons why if I am wrong) to the following questions: I have marked the answers at the end of the questions for the ones I believe to be correct. Please verify. 11. Actions taken by oligopolists to plan for and react to actions of rival firms represent: A a. strategic behavior b. interdependence c. cooperative behavior d. game theory e. all of the above 12. When participants in a game are in Nash equilibrium, B a. no participant has an incentive to change. b. each participant has chosen the best action possible, given what the others have chosen. c. No ... click for more

Game Theory

When McDonalds reduced it price on the Big Mac by 75% its customers also purchased fries and a soda. A newspaper reported that McDonald's was trying to revive its sales in the US with this promotion, however it did not. Within 2 weeks sales had fallen. Using game theory, what do you think messed up McDonald's plan?

CAPITALIZED COST

Find the capitalized cost of a present cost of $30,000, monthly costs of $1,000, and periodic costs every 5 years of $5,000. Use an interest rate of 12% per year, compounded monthly?? A. $-80,000 B. $-136,100 C. $-195,200 D. $-3,600,000

ECONOMICS/Estimates with interest rates

With an interest rate of 10% per year and given the following estimates, the annual worth of alternative ''F'' is closest to? A. $32,600 B. $36,100 ALTERNATIVE ''F'' C. $39,020 D. $43,500 First cost, $ -200,000 Annual cost, $/year -50,000 Annual Revenuue, $/year 120,000 Salvage Value, $ 25,000 Life, years ... click for more