Exploring Economics
7th Edition
ISBN: 9781305465596
Author: Sexton
Publisher: Cengage
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Question
Chapter 15, Problem 4P
To determine
To explain:
The way joint profit-maximizing price and output of the colluding firm is computed under oligopoly.
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Explain why an industry with economies of scale for
larger firms tends to be an oligopoly. Why don't we see
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What is mutual interdependence important under oligopoly,but not so important under perfect competition,monopoly,or monopolistic competition?
Why do oligopolies exist? Explain if you regularly purchase products owned by an oligopoly
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- An oligopoly is a market structure in which a. one firm has 100 percent of a market. b. there are many small firms. c. there are many firms with no control over price. d. there are few firms selling either a homogeneous or differentiated product.arrow_forwardA common characteristic of oligopolies is a. interdependence in pricing decisions. b. independent pricing decisions. c. low industry concentration. d. few or no plant-level economies of scale.arrow_forwardWhy are firms said to be independent in an oligopoly market? Explainarrow_forward
- Why do consumers fair better under a Stackelberg Oligopoly than a Cournot Oligopoly? How can it be that a monopoly can be as efficient as a perfectly competitive market?arrow_forwardWhat are the main features of a oligopoly market structure. Explain in detail with explanation of features too.arrow_forwardExplain the implication of a nonprice competition in an Oligopoly market?arrow_forward
- Please consider an oligopoly market. Suppose you were a producer in the market. Would you corporate with or compete against other producers? If you chose competition, how would you defeat the rivalries?arrow_forwardWhat are the incentives for firms in an oligopoly to collude or work together? Has price collusion happened in the past?arrow_forwardWhat are the incentives for firms in an oligopoly to collude or work together? Explain a past case on price collusion.arrow_forward
- Explain and describe the kinked demand curve of a firm in an oligopoly.arrow_forwardGive at least two examples of firms in a oligopoly market structure and explain how they meet the characteristics of that market structure.arrow_forwardExplain why government is usually more concerned about regulating an oligopoly than amonopolistically competitive marketarrow_forward
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