LO1 Explain how beliefs and strategic interaction shape optimal decisions in
Try these problems: 1, 15
LO2 Identify the conditions under which a firm operates in a Sweezy, Cournot,
Stackelberg, or Bertrand oligopoly, and the ramifications of each type of
oligopoly for optimal pricing decisions, output decisions, and firm profits.
Try these problems: 6, 19
LO3 Apply reaction (or best-response) functions to identify optimal decisions and
likely competitor responses in oligopoly settings.
Try these problems: 2, 12
LO4 Identify the conditions for a contestable market, and explain the ramifications for market power and the sustainability of long-run profits.
Try these problems: 10, 16
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