E) an outcome. What happens to oligopolistic firms when a recession occurs? c) They move leftward and upward to a higher point on the average-total-cost curve. It includes decisions made in concentrated markets, such as product prices, quality standards, and production planning. d) The firms in the industry are interdependent. E) other firms will not raise theirs. D) not an oligopoly. Typically, this means that at least 40% of the market is controlled by a few firms. Monopolists are not allocatively efficient, because they do not produce at the quantity where P = MC. The first firm to move in a sequential game has an advantage by establishing a ____ _____ that is favorable to them. d) both productive efficiency and allocative efficiency, b) neither productive efficiency nor allocative efficiency. c) All oligopolists' or imperfect competitors' demand curves are down-sloping because they are price makers. c) price leadership; cartel So here we can see a one-way interdependence pattern. 5) A market with a dominant firm and with weak barriers to entry ________ in long-run equilibrium because ________. *The game would eventually end in the Nash equilibrium (cell A). It encourages existing brands to improve product quality and originality by instilling a sense of rivalry. Advertising benefits society by ______. In a monopoly, only one big brand influences the entire market without any competition. This represents what kind of problem with the four-firm concentration ratio? It is difficult to enter an oligopoly industry and compete as a small start-up company. E) is not; frequently one of the smaller firms becomes the dominant firm, and the original dominant firm becomes less important. A) This game has no dominant strategies. When there are two market leaders in any industry or service, this is referred to as a duopoly. *It helps reduce demand for material products. D. 2021. Oligopoly as a market structure is distinctly different from other market forms. *The game would temporarily move to either cell B or cell C. 3) The Nash equilibrium for a sequential game in a contestable market with locked-in first stage prices results in D) Gear cheats, while Trick complies with the agreement. Welcome to EconTips, your number one source for all things about economics. a) fewer firms than monopolistic competition. B) both prisoners deny. What kind of problem does this represent with the four-firm concentration ratio? D) is not; to comply when the other firm complies and to cheat when the other firm cheats e) Price leadership model, In the _______ model of oligopoly, firms react to price decreases but ignore price increases by other firms. Impure because have both lack of b) legal Because of this, every firm takes decisions very carefully by considering the possible reactions of the rival firms. Barriers to entry. Oligopoly is an important form of imperfect competition. Brand reputation, company size, and minimal completion make decision-making crucial and influential across the group. A) behave competitively. b) It will always be downward sloping because it is a price maker. Small Number of Number: The number of firms in an oligopoly market is small where each firm controls an important proportion of the total supply. A) a natural monopoly. OA. B. El valor de cambio del bien se mide segn el trabajo que este tiene incorporado. What are three models used to study pricing and output by oligopolies? d) monopolistically competitive market, The study of how one firm reacts to the actions taken by another firm or individual when implementing a strategy is called _____. A) a firm in an oligopoly market. bc it's similar to monopoly but has the difference of having more firms lol. C) other firms will raise their prices by an identical amount. d) Interindustry competition, Which are barriers to entry in both monopolies and oligopolies? b) kinked demand But in practice, there are several barriers to entre which make it quite difficult for the new firms to join the industry or market. A market is considered to be a(n) ______ when the largest four firms in an industry control more than 40% or more of the market. Firms are profit-maximizers. (Enter one word per blank. So when an oligopolist decreases prices to increase output, others follow the path. B) there are two producers of two goods competing in an oligopoly market C) firms in monopolistic competition. There are just several sellers who control all or most of the sales in the industry. b) Localized markets *speeding up technological progress 0. c) Its marginal cost curve is made up of two segments c) threatens c) The outcomes for all firms are positive. D) neither is protected by high barriers to entry. *The firm is failing to produce at the profit-maximizing output. *The game would eventually end in either cell B or cell C. Marginal costMarginal CostMarginal cost formula helps in calculating the value of increase or decrease of the total production cost of the company during the period under consideration if there is a change in output by one extra unit. 6. A) is; all other firms act as if they are perfectly competitive B) is not; other firms can enter, which increases supply, decreases the price, and drives economic profit down to zero E) potential entrants taking all the business away from existing firms. always one step ahead. C) lower the price of their products. ENGL1190_V0854_2023WI_Communications23.docx. E) rivalry of the participants leads to the worst solution from their point of view. found that the most prevalent disorder was Course Hero is not sponsored or endorsed by any college or university. C) is; to cheat regardless of the other firm's choice They may produce homogeneous products or differentiated products. c) inflexible Due to minimal competition, each of them influences the rest through their actions and decisions. Question: Which of the following is NOT a characteristic of an oligopoly? D) specify how average cost is determined. They do it strategically so they do not lose their customers in what could be a price war. This way, Samsung and Nokia ensure non-price competition by enhancing core capabilities to build a loyal customer base. d) are more efficient because cartels and collusion is always successful C) the HHI for the industry is small. E) none of the above. Pure oligopoly - have a homogenous product. Thus, the land is worth Mr. mann's science students were experimenting with speed. It thus limits the competition to only those already in the group. Established firms in the market may take strategic actions to prevent new entries. It is an essential component of marketing strategy leading to brand recognition and business growth. *The firm's profits will be lower. 11) Because an oligopoly has a small number of firms, A) each firm can act like a monopoly. Oligopolyis a market structure Hence, undoubtedly it will react to the price reduction decision. (Pure) Monopoly 3. 5) According to the kinked demand curve theory of oligopoly, each firm believes that if it raises its price, 41) Refer to Table 15.3.12. D) the one producer of two goods sells the goods in a monopoly market How are profitability and risk impacted by changes in the current liabilities to total assets ratio? *manipulating consumer preferences. Therefore, the competing firms will be aware of a firm's market actions and will respond appropriately. Which statement is true about oligopolies? Over a long time period, cheating ______ collusive oligopolies Imperfect or Differentiated Oligopoly: ADVERTISEMENTS: Marketers highlight the distinguishing features in the product commonly through packaging or a good design, which helps communicate the benefitting factors to the shoppers.read more. On the other hand, if an oligopolist reduces output by raising prices, the rest refrain from doing so. It is assumed that all of the sellers sellidentical or homogenous products.read more, monopoly, and monopolistic competition. 10) In the dominant firm model of oligopoly, the dominant firm produces the quantity at which marginal revenue equals Advertising can reduce efficiency by ______. c) By changing pricing strategies land back or when DTRs debt to equity position improves, what should she do? However, the cartel system is fragile and considered illegal in many parts of the world as it includes increased technical and quality standards, mutually agreed pricing or price-fixingPrice-fixingPrice fixing is an agreement between business competitors to increase (very often), reduce (perhaps for a short time), establish, or stabilize (rarely) prices, disregarding the prices governed by the market's flow of demand and supply.read more, etc. b) are always less efficient What would have been DTRs debt to equity ratio if the$10 million of stock had not been It determines the law of demand i.e. 31) Refer to Table 15.3.7. *world trade You'll get a detailed solution from a subject matter expert that helps you learn core concepts. E) 10,000. Business Economics Consider a Cournot oligopoly with n = 2 firms. D) zero. In the credit card industry, for example, Visa and MasterCard have a duopoly.read more. d) elastic, An oligopoly firm's demand curve will be kinked if ______. a) Its demand curve is downward-sloping c) competition Meanwhile, all firms know that their decisions affect other firms sales and profit, hence they necessarily react against those decisions. It is assumed that all of the sellers sellidentical or homogenous products. 3) Canada's anti-combine law is enforced by Four characteristics of an . List the three steps followed under the gross profit method of estimating inventory. Following are the characteristics of oligopoly: Interdependence. A) Dr. Smith advertises no matter what Dr. Jones does. *world trade a. small number of firms b. has some pricing power c. the firms are interdependent d. the good produced may be unique or not e. low barriers to entry; Which of the following is not a characteristic of an oligopolistic market structure? La renta de la tierra de primera calidad ser siempre superior a la renta de la tierra de segunda categora. E) more elastic than the demand just above the price at the kink. The group that colludes is referred to as a cartelCartelA cartel is a group of producers of goods or suppliers of services formed through an agreement amongst themselves to regulate the supply of goods or services with the basic intent to illegally regulate the prices or restrict competition regarding the said goods or services.read more. c) Affect costs and influence the supply of rival firms However, too much price decrease can lead to a price warPrice WarA price war is a competition among the competitors of the business in lowering the price of their products to gain an advantage over their competitors in price and capture a greater market share. C) there are numerous producers of two goods competing in a competitive market *To increase control over the product's price For a particular industry there may be a low four-firm concentration ratio since it is measured on a nationwide scale, but there can still be a local oligopoly. B) raise the price of their products. Which of the following is not a characteristic of oligopoly? When there are two firms, the market structure is called duopoly, The number of buyers will be quite large as in other market models, If the products of all firms are homogeneous, then it is called , If the products are differentiated, then it is called , The nature of products of the firms is crucial in making price and output decisions. d. 2. . a) price changes occur slowly Why is collusion desirable to oligopolistic firms? D) if Bob does not change his decision, Jane would like to change hers. *localized markets, Barriers to entry into an oligopoly most resemble those of a ______. *The firm is failing to produce at the profit-maximizing output. B) This game has no Nash equilibrium. a) major firms in an industry ranked by employment 11) Once a cartel determines the profit-maximizing price, 300 laborers were employed at the plant that month. c) Nash equilibrium A) Each firm faces a downward-sloping demand curve. B) perfectly inelastic demand. a market structure characterized by a small number of interdependent sellers is called a oligopoly Which of the following is NOT a common characteristic of oligopoly? Oligopoly is said to prevail when there are few firms or sellers in the market producing or selling a product. To further understand market modules follow the below topics. 6) According to the kinked demand curve theory of oligopoly, at the quantity corresponding to the kink, the firm's Each firm is so large that its actions affect market conditions. E) the firms are interdependent. a) over collusion Marginal revenue = Change in total revenue/Change in quantity sold. Such companies have complete control of the market, earning high profits and gains in a specific sector or service. d) price leadership; kinked-demand, From society's standpoint, what are the effects of collusion in an oligopolistic industry? The factors that determine a market structure include the number of businesses, control over prices, and barriers to market entry. E) A and C. 8) A merger is unlikely to be approved if ________. $3. C) is; the dominant firm is making an economic profit A) a Competition Tribunal. Which of the following is not a characteristic of an oligopoly? B) predict that an increase in price by one firm is accompanied by price increases of other firms if every firm experiences a large enough increase in marginal cost. Which scenario describes a simultaneous game? It contains well written, well thought and well explained computer science and programming articles, quizzes and practice/competitive programming/company interview Questions. b) By increasing recruiting expenses D) a prisoner has no incentive to confess to his crime, and stands a greater chance of not going to prison. d) lowering the cost of production Lets identify the oligarchy before identifying the characteristics of an oligopoly. Each firm has a substantial share of the market supply. C) independence of firms. B) "I am producing more widgets than Wally and I agreed to in our talk last week." If one of the firms cheats on this agreement, what will happen? An oligopoly is an industry dominated by a few large firms. A. firms have no control over their price B. firms may sell a differentiated product C. firms have market power D. firms may sell a standardized product E. the market contains a few large products A, C In an oligopolistic market, the two types of retaliation include. E) downward-sloping demand curve with no kink. *Large capital investment Suppose that one of the two firms decided to reduce the price of its product by some amount resulting 20 % increase in its sales. E) marginal revenue curve is upward sloping. Oligopolists do not stress competing with each other on the pricing front. Oligopolies are typically composed of a few large firms. c) Dominant firms Which of the following is not a characteristic of oligopoly? It is one of the four market situations, including perfect competitionPerfect CompetitionPerfect competition is a market in which there are a large number of buyers and sellers, all of whom initiate the buying and selling mechanism. *Ownership and control of raw materials E) entry into the industry of rival firms will raise cartel profit as long as the new firms join the cartel. Economists identify four types of market structures: (1) perfect competition, (2) pure monopoly, (3) monopolistic competition, and (4) oligopoly. c) price leadership a) productive efficiency but not allocative efficiency b) neither productive efficiency nor allocative efficiency b) are few in number Though, it is rare to find pure oligopoly situation, yet, cement, steel, aluminum and chemicals producing industries approach pure oligopoly. The value denotesthe marginalrevenue gained. Strategic independence. e) price changes are typically expensive, b) product development and advertising are relatively difficult to copy, Oligopolies are not a desirable market structure because they achieve ______. c) it will prevent a price war Types of Market Structure Economists group industries into four distinct market structures: 1. The study of how people behave in strategic situations is called _____ theory. the students used balls . *It lowers search costs of information for consumers. It is calculated by dividing the change in the costs by the change in quantity. e) straight What are the positive effects of large oligopolists advertising? The payoff matrix of economic profits above displays the possible outcomes for Bob and Jane who are involved in game of whether or not to advertise. D) Consumers will eventually decide not to buy the cartel's output. Furthermore, no restrictions apply in such markets, and there is no direct competition. c) Kinked-supply curve model It also means that each firm must be aware of the reaction of others to their actions. Which of the following is not a characteristic of an oligopoly? b) Affect profits without influencing the profits of rival firms a- Compute the Cournot equilibrium total quantity, price, quantity for each firm, and . The policy implementation process has not taken in to account the life of rural peasants living in vicinity of cities. e) It could be downward sloping or kinked. Which one of the following observations is correct? Oligopolies are typically composed of a few large firms. c) less than or equal to 40% b) upward-sloping a. And rest of the businesses or minor players follow the same. D) patents, copyrights, barriers to entry, and rules. marginal cost pricing The joining of firms that are producing or selling a similar product is a horizontal merger Suppose an industry has total sales of $25 million per year. as the price increases, demand decreases keeping all other things equal.read more shifts. East Asian regimes tend to have similar characteristics First they are orien. *It eliminates competition among firms. E 12) Because an oligopoly has a small number of firms A) each firm can act like a monopoly. D. El desempleo voluntario hace que no se produzca el crecimiento econmico. D) A and B. Which of the following is not a characteristic of oligopoly? O B. c) through collusion The competing firms are few in number but each one is large enough so as to be able to control the total industry output and a moderate. The market has been shared equally by firms A and B, The cost of firm A is lower than firm BProfit maximizing the output of firms A is XA and the price is PA. Firm B adopts this price and sells XB(=XA) amount.

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