1. G-Force is competing with three other firms for a military contract to remove land mines. Which of the following would not be a part of their competition strategy?
a. comparative advantage
b. zero-sum game
c. discrete strategy
d. dynamic game
2. The discoverers of imperfect markets focused on what economic process to criticize the competitive model?
a. comparative advantage
b. opportunity cost
c. discrete strategy
d. economies of scale
3. If the price discounting by two firms in the same market was a sequential process where each firm has perfect knowledge and knows what each payoff is:
a. neither firm lowers its price.
b. both firms lower their price.
c. one firm lowers its price, while the other firm does not.
d. one firm exits the market.
4. A predatory pricing strategy:
a. rewards cooperation between rival firms.
b. is typically used by small firms to gain market share from larger firms.
c. can result in higher consumer prices in the short run, but more competition in the future.
d. can result in lower consumer prices in the short run, but higher prices in the long run.