Lecture 13

Question 1

Which of the practices is not penalized by the European Union as a competition authority.

Accepted Answer

Entering EU country without agreement of national authority

Question 2

The AMC framework is a conceptual framework indicating when firms are likely to attack and counter-attack each other.

Accepted Answer

True

Question 3

Leniency programmes create incentives to report illegal collusion that a company is involved in.

Accepted Answer

True

Question 4

Scenario planning describes a technique generating multiple scenarios of possible future states of the industry.

Accepted Answer

True

Question 5

Collusion between firms is more likely if ...

Accepted Answer

there is an industry price leader

Question 6

A technique using econometric models to predict the likely future value of key economic variables

Accepted Answer

Economic Forecasting

Question 7

The aircraft industry serves as a good example for an industry with high entry barriers.

Accepted Answer

True

Question 8

Oligopoly describes a market structure with only a small number of competing firms.

Accepted Answer

True

Question 9

Prisoner's dilemma is a concept from game theory which explains why cartels often break down.

Accepted Answer

True

Question 10

A strategy of attack that local firms use to avoid direct confrontation with incumbents

Accepted Answer

Blue Ocean Strategy

Questions 10