In the Cournot oliogopoly model, firms compete by setting quantities. In class we noted that as the number of firms in the market grows very large, the outcome looks increasingly like what other model we studied? Provide intuition for your answer.

The concept of a Nash equilibrium, when applied to an oligopoly, relies on the notion that Firm A in an oligopoly chooses its own best strategy based on which consideration? based on the strategies that other firms have chosen based on the knowledge that other firms are likely to choose their strategies in response to Firm A's choice of a strategy based on the objective of maximizing the collective profits of all firms in the industry based on the internal financial information of Firm A

Do firms in an oligopoly act independently or interdependently? Explain your answer. provide example

Define oligopoly in your own words and elaborate on the characteristics of oligopoly.

Which of the following scenarios is a negative example of an oligopoly?         Wireless phone companies have nearly eliminated standard cell phones, forcing consumers to buy smartphones.         Soft drink companies offer several choices to consumers, including regular, diet, zero sugar, and accent flavors such as cherry or lemon.         Automobile companies continue to improve vehicles and invent new features to appeal to consumers.         Fast-food chains keep prices low to entice consumers.

Consider a market in which there are two firms: A and B. Each firm produces a differentiated product and chooses its price. Assume that each firm can set price equal to $60 or $70. The payoffs associated with each set of prices are shown. If the firms choose price simultaneously, then the Nash equilibrium price for firm A is chooses price first and can commit to that price, then firm A will set its price equal to If firm A ○ A. $70; $60 B. $70; $70 ○ C. $60; $70 ○ D. $60; $60 Q Firm B's Price ✓ $60 $70 $1800 $1650 $60 $1800 $2250 Firm A's Price $2250 $2200 $70 $1650 $2200

What is the cost to a firm in an oligopoly that fails to take its rivals’ actions into account?

Economists believe that oligopoly firms have a kinked demand curve. Explain why the oligopoly demand curve has a kink.