Question

Please answer all

When the US Government purchases aircraft carriers for the US Navy, this is an example of

perfect competition.

monopolistic competition.

oligopoly.

monoopoly.

Monopsony

When oligopoly firms work together as an informal organization to set prices and quantity in an industry, the firms are applying the strategy of

Price Leadership.
	Prisoner's Dilemma.

	Nash Equilibrium.
	cartel.

collusion.

When the firms in an industry follow the most risk taking firm with respect to price only downward, the firms are applying the strategy of

	Price Leadership.
	Prisoner’s Dilemma.

	Nash Equilibrium.
	Kinked Demand Curve.

Collusion.

Answer 1

When the aircraft carriers are only made for US Navy and they are the only purchasers of it, this is called as Monopsony or singler buyer

Therefore (e) Monopsony is the answer.

When oligopoly firms club together and then set the price levels, they collude and this illegal activity is known as cartel

Therefore (c) cartel is the answer

Price leadership is when one firm sets the price level and all other firms join them and therefore

(a) price leadership is the answer