True or false: imperfect competition

Exercise and reference answers

Questions

1. Statement is true

   Yes

   Statement

   A cartel agrees to produce the monopoly output.

2. Statement is true

   No

   Statement

   Oligopoly firms match price rises but not cuts.

3. Statement is true

   Yes

   Statement

   Boeing and Airbus form a duopoly.

4. Statement is true

   No

   Statement

   Perfect competition sits in the middle of the spectrum.

5. Statement is true

   Yes

   Statement

   In a prisoner's dilemma cooperation would pay more.

Instructions

Tap True or False for each statement.

Explanation