Let's say that you know the following information for an oligopoly firm:Total Revenue equals $200 million.Variable Costs are $170 million.Fixed Costs equal $20 million.The firm is currently producing 2,000 products at the MC = MR point (and the MC curve is rising).What recommendation do you have for this firm?

Scenario 2: Suppose a stream is discovered whose water has remarkable healing powers. You decide to bottle the liquid and sell it. The market demand curve is linear and is given as follows: P = 30-Q The marginal cost to produce this new drink is $3. Refer to Scenario 2. What will be the price of this new drink in the long run if the industry is a Bertrand duopoly? OA. $13.50 OB. $9 OC. $12 O D. $3 OE. None of the above D

Answer choices are first blank: negative, positive, zero second blank: an equal number of, fewer, more

In comparing an oligopolistic firm to a perfectly competitive firm it is generally assumed that the price charged by the competitive firm will be higher than the price charged by the oligopolistic firm. True or False (Explain)

Order the market structures according to the level of prices you would expect. Then, order them according to the level of quantity you would expect.

What type of market exists when a small number of businesses dominate an industry? oligopoly monopolistic competition  monopoly perfect com

Explain the difference in market power between perfectly competitive firms and monopolistically competitive firms. Which firms have more control over prices and/or output? Why? What are some industry examples of each type of market structure?

Microlith, Inc. operates in a monopolistically competitive market.  Using an appropriate diagram, explain why this firm will set P > MC, but will still earn zero economic profit in the long run.

Economics: Industrial Economics Question: In a market operating under quantity competition there are 2 firms (Cournot duopoly). The cost structure of firm 1 is given by C1(q1) = 675 + 60q1 + (q1)^2 and that of firm 2 is given by C2(q2) = 375 + 20 q2 + 5 (q2)^2. The inverse demand function is P = 300 - 2 Q1, where Q = q1 + q2.   Define the profit maximization problem that every firm faces and solve for the respective best response functions. Use these (or the first order condition directly) to answer the following: 1. The Nash Equilibrium quantity produced by firm 1 q1* is Choices: A. 33.3 B. 38.3 C. 40 D. 35   2. The Nash Equilibrium quantity produced by firm 2 q2* is Choices: A. 15 B. 53.3 C. 20 D. 21.7   3. The Nash Equilibrium price is Choices: A. 126.7 B. 180 C. 200 D. 190   4. The Lerner Index for the market is closest to Choices: A. 0.29 B. 0.66 C. 0.43 D. 0.57   Thank you for your help and support Instructor Agent!

Which of the following is a strategy used by firms in monopolistically competitive industries to convince consumers that their product is better than their rivals' products? Multiple Choice comparative advertising or niche marketing equity marketing comparative advertising niche marketing