Learning Activity # 7 1. What are markets with only a few sellers, each offering a product similar or identical to the others, typically called? a. Competitive markets b. Monopoly markets c. Monopolistically competitive markets d. Oligopoly markets 2. In order to be successful, what must a cartel do? a. They must find a way to encourage their members to produce more than they would otherwise produce. b. They must agree on the total level of production for the cartel, but they need not agree on the amount produced by each member. c. They must agree on the total level of production and on the amount produced by each member. d. They must agree on the prices charged by each member, but they need not agree on amounts produced. 3. Which of these situations produces the largest profits for oligopolists? a. They reach a Nash equilibrium. b. They reach the monopoly outcome. c. They reach the competitive outcome. d. They produce a quantity of output that lies between the competitive outcome and the monopoly outcome. 4. Game theory is important for the understanding of which of the following types of markets? a. Competitive markets b. Monopolies c. Oligopolies d. Foreign