37. For markets characterized by oligopoly, what do we know? a. The oligopolists are best off cooperating and behaving like a monopolist. b. Collusive agreements usually will not prevail because there is temptation to cheat. Collective profits are always lower with cartel arrangements than they are without cartel C. arrangements. d. Both a and b.

37. For markets characterized by oligopoly, what do we know? a. The oligopolists are best off cooperating and behaving like a monopolist. b. Collusive agreements usually will not prevail because there is temptation to cheat. Collective profits are always lower with cartel arrangements than they are without cartel C. arrangements. d. Both a and b.

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter10: Monopolistic Competition And Oligoply

Section: Chapter Questions

Problem 9SQP

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Which of the following statements explain why governments are usually more concerned about regulating an oligopoly than a monopolistically competitive market? multiple choice a. Oligopolies are more common than monopolistically competitive markets. b. Oligopolies are always more inefficient than monopolistically competitive markets. c. Oligopolies can never collude for very long, and will eventually compete away its profits without government intervention. d. Oligopolies are even more inefficient than monopolies.
Consider the curve in Figure, which shows the market demand, marginal cost, and marginal revenue curve for firms in an oligopolistic industry. In this example, we assume firms have zero fixed costs. a. Suppose the firms collude to form a cartel. What price will the cartel charge? What quantity will the carte supply? How much profit will the cartel earn? b. Suppose now that the cartel breaks up and the oligopolistic firms compete as vigorously as possible by cutting the price and increasing sales. What will be the industry quantity and price? What will be the collective profits of all firms in the industry? c. Compare the equilibrium price, quantity, and profit for the cartel and cutthroat competition outcomes.
Which of the following is not true about oligopoly? A. there are few sellers B. profit is higher if there is collusion C. collusion is always subject to threat of a member violating the collusive agreement D. a cartel is an official organization of oil exporting countries which aims to maximize the profits for the group E. all are true
Consider an oligopoly industry whose firms have identical demand and cost conditions. If the firms decide to collude, then they will want to collectively produce the amount of output that would be produced by: a. A monopolistic competitor. b. A pure competitor. c. A pure monopolist. d. None of the above.
Which of the following statements about oligopoly are FALSE: A. Oligopolies have a tendency to collude and form cartels in order to split monopoly like profits B. Oligopolistic markets under collusion are socially inefficient (create deadweight loss) C. If two firms are in a collusion and Firm 1 violates the agreement by lowering the price, Firm 1 will increase its own profit but overall profit in the industry will go down D. All of the above statements are true
What does the prisoner’s dilemma teach us about the behavior of oligopolists? Group of answer choices 1-It is a scenario that teaches us that the gains from cooperation are larger than the rewards from pursuing self-interest. 2-It teaches us that the oligopoly market structure always leads to poor business results. 3-It teaches us that oligopolists typically get better business results when they pursue their own self-interests. 4-It teaches us that oligopolists make random decisions about business decisions that could land them in jail.
True/False 1. When oligopolists collude and form a cartel, the outcome in the market is similar to that generated by a perfectly competitive market. 2. Cooperation is easily maintained in an oligopoly because cooperation maximizes each individual firm's profits. 3. If a prisoners' dilemma game is repeated, the participants are more likely to independently maximize their profits and reach a Nash equilibrium.
An oligopoly is a market structure in which only a few sellers produce similar or identical products. Oligopolies are price-setters and can collude to behave like a monopolist. 1. How do oligopolies set their prices? Please help thank you
The graph below shows the demand for Cosmic shampoo. ◻ Suppose there are no fixed costs and marginal cost is a constant $30. a. What are the perfectly competitive price and output? Price: $ Output: b. What are the cartel (monopoly) price and output? Price: $ Output: c. If there are only four firms in the cartel, what are the price and output of each firm, assuming equal shares? Round your answers to 1 decimal place. Price: $ Output: Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Which of the following is a feature of an oligopoly? a. group behavior among firms b. firms that are all similar in size c. low barriers to entry d. highly flexible pricing
What is the primary difference between oligopolistic "coopetition" and cartel behavior? Group of answer choices A. Oligopolistic firms work together to set prices and cartels do not B. One firm has most of the power in oligopolistic coopetition, while cartels share power C. One firm has most of the power in a cartel, while oligopolistic firms share power D. Cartels work together to set prices and oligopolistic firms do not
Which industry(ies) would be indicative of an oligopoly market structure? Check all that apply. A. A drug cartel B. The tobacco industry C. The corn industry D. The restaurant industry E. The grocery industry F. The crude oil industry G. The laundry detergent industry