Econ Micro (book Only)
6th Edition
ISBN: 9781337408066
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 10, Problem 11P
To determine
The difficulty in predicting a firm’s behavior under oligopoly.
Concept Introduction:
Oligopoly refers to a market which is dominated by a small number of large sellers (oligopolists). Oligopoly has its own market structure.
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1. Why do oligopolies exist?
A. A small number of firms have established barriers to entry using economies of scale, patents, and sheer size to prevent other firms from challenging them.
B. The oligopolistic firms are created, run, and supported by the government.
C. The members of an oligopolistic market are producing in the upward sloping range of their long run average cost curves.
1. compare the quantity and price of an oligopoly to those of a monopoly
2. compare the quantity and price of an oligopoly to competitive market
56.Assume that an oligopoly's four enterprises are forming a pact to cooperate. How might the ease of entry into their industry influence how much they charge?
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- J Copyright © McGraw-Hill Education. Permission is granted to reproduce for classroom use. NAME DATE CLASS Math Practice for Economics Comparing Prices among Competitors networks Background information: The candy industry in the United States could be defined as an oligopoly because just three companies make 99.4% of snack size chocolates. The big three companies are Hershey's, Mars, and Nestle. All three companies use much of the same ingredients, so how do they compete against one another? This is primarily done through price. Directions: The two tables below show what a snack size chocolate costs from the various candy makers, big and small. Read the table below. Then, answer the following questions using the information in the table. 110 ct bag $18.12 = 16 cents each Walmart Amazon Hershey's 215 ct. bag $13.88 = 6 cents each 100 ct. bag $12.81 = 13 cents each Mars 230 ct. bag $13.88 = 6 cents each Nestle 70 ct. bag $8.98 = 13 cents each 55 pc. Bag $17.96 = 33 cents each Candy…arrow_forwardWhat are the main characteristics of oligopoly? How does output and price compare to that of perfect competition? What are the main characteristics of oligopoly? How does output and price compare to that of perfect competition? View keyboard shortcuts EditViewInsertFormatToolsTable 12pt Paragrapharrow_forward2. Which is a better market structure, Monopoly or Oligopoly? Why?arrow_forward
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