Principles of Microeconomics (12th Edition)
12th Edition
ISBN: 9780134078816
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 14, Problem 1.1P
To determine
Classify oligopoly.
Expert Solution & Answer
Explanation of Solution
The market for (a) Motorcycles, (b) Cruise lines and (d) Firearms can be classified as oligopolies as they are dominated by a few firms. However, the market for (b) Hotels and (e) Furniture cannot be classified into oligopoly, as there are many firms in these industries with a lot of product differentiation. Also, there is a lot of entry and exit of the firms in these industries.
Economics Concept Introduction
Oligopoly: Oligopoly is a market structure where there are only few sellers who sell similar or identical products.
Want to see more full solutions like this?
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
What are the characteristics of an oligopoly? Choose all that apply.
A. One particular product or service has no substitute.
B. A few large sellers exist.
C. Only one seller exists.
D. Products and services tend to be identical or similar.
Choose a market for a good that you use often in real life and explain whether the market is perfect competition, monopoly, monopolistic competition, or oligopoly using the definition of the four different market structures. Please provide explanations
is an organization created a
formal agreement between a group
of producers of a good or service, to
regulate supply in an effect to
regulate or manipulate prices.
Select one:
a. Oligopoly.
b. Cartel.
c. Perfect competition.
d. Monopoly.
Chapter 14 Solutions
Principles of Microeconomics (12th Edition)
Knowledge Booster
Similar questions
- i)Do you think monopolistic competetion markets operate efficiently? ii)Do you think oligopoly markets operate efficiently?arrow_forwardYou see that an industry has only a few major firms. How could you best determine that this market is an oligopoly rather than monopolistic competition? a Look to see if there are economic profits in the short run. b Look to see if there are barriers to entry. c Look to see if there are economies of scale. d Look to see if price is above marginal cost.arrow_forwardHow do sellers in the monopolistic competition and monopoly competition compete?arrow_forward
- You are planning on starting a fast food restaurant to compete with Chick-fil-a, Zaxby's, Popeyes, and Bojangles. You want to be more upscale and your chicken will have a crispier skin. Which market structure are you entering into? A. Monopoly B. Oligopoly C. Monopolistic Competition D. Perfect Competitionarrow_forwardmonopolistically competitive, oligopoly, or a monopoly good. a. Sushi Restaurants b. Blueberries c. Electric cars d. Electricity in BCarrow_forwardWhich of the following industries is a good example of oligopoly? Answers: A. Athletic shoes B. Restaurant C. Corn D. Hotelarrow_forward
- Suppose, Pfizer Company is the only company allowed by the Sultanate government to sell COVID vaccine in Oman. According to you, what type of market Pfizer Company is having in Oman? a. Monopoly market b. Monopolistic market c. Competitive market d. Oligopoly marketarrow_forwardWhich of the following is not true about oligopoly? A. there are few sellers B. profit is higher if there is collusion C. collusion is always subject to threat of a member violating the collusive agreement D. a cartel is an official organization of oil exporting countries which aims to maximize the profits for the group E. all are truearrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
- Microeconomics: Principles & PolicyEconomicsISBN:9781337794992Author:William J. Baumol, Alan S. Blinder, John L. SolowPublisher:Cengage LearningEconomics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub Co
Microeconomics: Principles & Policy
Economics
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:Cengage Learning
Economics Today and Tomorrow, Student Edition
Economics
ISBN:9780078747663
Author:McGraw-Hill
Publisher:Glencoe/McGraw-Hill School Pub Co