Both oligopoly and monopoly market structures tend to form if or when: the product, service or production processes do NOT involve patents or exclusively licensing. there are no production cost advantages when firms produce a large volume, in other words, no econom of scale high barriers to entry into an industry, such as large capital (K) capacity requirements and start-up costs, longstanding reputation or past mergers (consolidation of firms). each firm's product is identical, standardized and no different from other firms' product in the market.

Both oligopoly and monopoly market structures tend to form if or when: the product, service or production processes do NOT involve patents or exclusively licensing. there are no production cost advantages when firms produce a large volume, in other words, no econom of scale high barriers to entry into an industry, such as large capital (K) capacity requirements and start-up costs, longstanding reputation or past mergers (consolidation of firms). each firm's product is identical, standardized and no different from other firms' product in the market.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Conditions for successful economic diversification plan and strategy in Oman are Select one: a. Creating an enabling business environment O b. human capital and the potential for skill development C. All the Given d. Investing in human capital
Match the characteristics below with the appropriate models of firm behavior. Many firms, differentiated product, free entry One firm, patents, licenses, or barriers to entry Many firms, homogeneous product, free entry Few firms, strategic behavior Monopolistic competition Monopoly Competition Oligopoly I I I
match the answers
(b) Based on the following conditions compare pure competition, pure monopoly, monopolistic competition, and oligopoly: (i) Flexibility of prices (ii) Expenditures on advertising and sales promotion. (iii) Efficiency in allocation of resources.
which of the following explanation does not describe the relationship between generic strategy and alternative competitive strategy? a) process competitive strategy is related to cost-leadership strategy b) costumer competitive strategy is related to differentation strategy c) product competitive strategy is related to differentiation strategy d)none of the above
If a market changes from oligopoly to perfect competition, than as a result: Group of answer choices Output should increase in the long run. Fewer resources will be allocated to the market. Prices should rise in the long run. Profitability should rise in the long run. Note :- solve with details explanation and no plagiarism.
Economies of scale are the defining characteristic for which of the following? * perfect competition oligopoly monopolistic competition game theory O natural monopoly
Using a pizza business as a firm in its appropriate market model; identify the following aspects that would apply to this business. Select all the statements that would apply to this business. If the statement does not apply, leave it blank. Select 4 correct answer(s) Each pizza business would be able to offer unique pizza choices. OA pizza business would be considered part of a monopolistically competitive market. Each producer would be able to choose the price they charge for their various size pizzas. The cost to start a pizza business could be considered low to moderate with few limitations. The costs to start a pizza business would require significant infrastructure, and be extremely capital-intensive. all nizzas are the same. Mostiy cloudy
Monopolistic competition is a market structure very much like perfect competition except that Firms differentiate the characteristics of their product Entry and exit is not permitted The demand curves facing firms are perfectly price inelastic Each firm has a strategy for how they will react to other firms’ price or quantity
Read your textbook (Chapters 1-7) and use seven peer reviewed publications and write an APA formatted paper of minimum five (5) pages about the following: Explain the Five Forces Framework and Industry Profitability of Michel Porter. Describe the four market structures of Perfect Competition, Monopoly, Monopolistic Competition, and Oligopoly. Analyze the relation between the five forces and different market structures. Apply your understanding in the evolution of the market in the computer industry (Page 223).
Consider a type of product whose market structure is monopolistic competition. In the shift from no trade in this type of product to free trade Multiple Choice a country will export the product only if the world price is higher than the country's no-trade price. the number of varieties or models of this type of product available to consumers will increase. factor prices in a country will change by large amounts If most of the country's trade in this type of product is Intra-Industry trade. the extra demand from foreign buyers for this type of product will increase the product price.
Suppose there are two distinct industries - (1) the fast-food industry and (2) the sporting goods industry. Classify each industry into one of the following market structures. (Minimum word requirement: 100 words) Perfect competition Monopoly Monopolistic competition Oligopoly