An oligopolistic market structure is distinguished by several characteristics, one of which is either similar or identical products. Which of the following are other characteristics of this market structure? Check all that apply. ONeither mutual interdependence nor mutual dependence Market control by a few large firms Market control by many small firms Mutual interdependence Difficult entry

MARK ALL ANSWERS THAT APPLY: Prices in an oligopolistic market will tend to be: the same as they would be in a monopoly higher than they would be in a monopoly lower than they would be in a competitive market lower than they would be in a monopoly higher than they would be in a competitive market

Explain the general meaning of the profit payoff matrix below for oligopolists X and Y. All profit figures are in thousands. a. Use the payoff matrix to explain the mutual interdependence that characterizes oligopolistic industries. b. Assuming no collusion between X and Y, what is the likely pricing outcome? c. In view of your answer to 3b, explain why price collusion is mutually profitable. Why might there be a temptation to cheat on the collusive agreement?