Homework Answers
Oligopoly is a market type where-
1.there are few large seller's and large number of buyers .
2.There are barriers to entry and exit .
3.They form cartels.
They do not have significant control over the price and depend on the Rivals as well so for this they from cartel so that they have price control and market control .
The best example is oil and petroleum exporting countries (OPEC).
Both Monopoly and oligopoly maximize profit when marginal revenue equals to marginal cost.
Oligopoly has to consider its Rival as well .
but in case of monopoly it is the only seller so it decides the price and his control over the price.
Answer is option B
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An oligopoly differs from a monopoly in that an oligopolist: O has significant control over its...
What distinguishes oligopoly from monopolistic competition? A) an oligopolist charges a price greater than marginal revenue...
What distinguishes oligopoly from monopolistic competition? A) an oligopolist charges a price greater than marginal revenue at the profit maximizing output whereas a monopolistic competitor does not. B) an oligopoly can be contestable whereas monopolistic competition is not. C) Ano oligopolist explicitly takes into account competitors reactions to its output and pricing decisions whereas a monopolistic competitor doe not. D) An oligopolist faces barriers to entry, whereas a monopolistic competitor does not.
Cournot Oligopoly and Number of Firms In a Cournot oligopoly, each firm assumes that its rivals...
Cournot Oligopoly and Number of Firms In a Cournot oligopoly, each firm assumes that its rivals do not change their output based on the output that it produces. Ilustration: A Cournot oligopoly has two firms, YandZ. Yobservesthe market demand curve and the number of units that Z produces. It assumes that Z does notchange its output regardless of the number of units that it (Y) produces, so chooses a production level that maximizes its profits. The general effects of a...
Monopoly pricing 4. Firm X has a complete monopoly over the production of nutmeg. The following...
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1.Value of marginal product differs from marginal revenue product in each of the following except __________....
1.Value of marginal product differs from marginal revenue product in each of the following except __________. A. monopoly B. oligopoly C. perfect competition D. monopolistic competition 2.If the firm operates in markets that are not perfectly competitive, what will the price will tend to be? A. Equal to marginal revenue B. Less than marginal revenue C. Greater than marginal revenue D. The same as the competitive market 3.At every level of input, the marginal revenue product of the input equals...
QUESTION 8 In theory, placing a price control on a natural monopoly should have the same...
QUESTION 8 In theory, placing a price control on a natural monopoly should have the same outcome as public ownership create zero economic profits for the comp reduce deadweight loss as much as possible All of these statements are true any QUESTION 9 The government should set the p rice for natural m onopolies at their: average total cost. marginal cost. average variable cost. fixed cost. QUESTION 10 The long run outcome of the monopolistically competitive firm: occurs where price...
4. For a monopoly firm, marginal revenue (MR) is price (greater/less) than 5. To maximize profits,...
4. For a monopoly firm, marginal revenue (MR) is price (greater/less) than 5. To maximize profits, a monopoly firm picks the quantity at which revenue average revenue) equals {marginal cost/average cost) (marginal (Game Theory/Consumer Theory) is a method for analyzing strategic behavior of oligopoly firms 7. The entry of the second firm under monopolistic competition structure of market shifts the demand curve of the first firm to the (right left). D Focus ch De 9 W 11. Firms in a...
QUESTION 21 If a monopoly situation arises from a perfectly competitive market, the portion of producer...
QUESTION 21 If a monopoly situation arises from a perfectly competitive market, the portion of producer surplus that increases in a monopoly is transferred from the perfectly competitive market's deadweight loss o fixed cost. consumer surplus. long-run positive economic profit. QUESTION 22 If a monopolist lowers its price • the quantity demanded remains the same. the quantity demanded decreases the quantity demanded becomes zero. the quantity demanded increases. QUESTION 23 I a monopolist produces to a point at which marginal...
1.) What is the main difference between a competitive firm and a monopoly? a. A competitive...
1.) What is the main difference between a competitive firm and a monopoly? a. A competitive firm owns a key resource, but a monopoly firm does not. b. A competitive firm is a price taker, and a monopoly is a price maker. c. A competitive firm produces output at a lower cost than a monopoly firm. d. A competitive firm is subject to government regulations, but a monopoly firm is not. 2.) What is the main social problem caused by...
Perfect Competition Competition Monopolistic Monopoly Oligopoly Goal of firmsMaximize Profit Rule...
how would you fill out this graph?
Perfect Competition Competition Monopolistic Monopoly Oligopoly Goal of firmsMaximize Profit Rule for maximizing profit MR-MC Can earn economic profits in the short run? Yes Can earn economic profits in the long run? Yes Price taker? Sometimes P2MC Sometimes Price & MC Produces welfare maximizing output? Number of firms? Few 3. (1 point) Consider a world where only blank t-shirts are produced. Draw hypothetical Demand faced by a firm, MR, MC, and ATC curves...
Figure 15-6 Price $20+ Marginal Cost 100 150 200 Quantity Marginal Revenue Refer to Figure 15-6. What is the deadweight loss caused by a profit-maximizing monopoly? O O $150 $200 $250 Os300 A monopolist faces market demand given by P - 60 - Q. For this ma
Figure 15-6 Price $20+ Marginal Cost 100 150 200 Quantity Marginal Revenue Refer to Figure 15-6. What is the deadweight loss caused by a profit-maximizing monopoly? O O $150 $200 $250 Os300 A monopolist faces market demand given by P - 60 - Q. For this market, MR = 90 - 2Q and MC - Q. What price will the monopolist charge in order to maximize profits? O $20 O $30 O so Osso In Canada, in the majority of...
Cournot Oligopoly and Number of Firms In a Cournot oligopoly, each firm assumes that its rivals do not change their output based on the output that it produces. Ilustration: A Cournot oligopoly has two firms, YandZ. Yobservesthe market demand curve and the number of units that Z produces. It assumes that Z does notchange its output regardless of the number of units that it (Y) produces, so chooses a production level that maximizes its profits. The general effects of a...
QUESTION 8 In theory, placing a price control on a natural monopoly should have the same outcome as public ownership create zero economic profits for the comp reduce deadweight loss as much as possible All of these statements are true any QUESTION 9 The government should set the p rice for natural m onopolies at their: average total cost. marginal cost. average variable cost. fixed cost. QUESTION 10 The long run outcome of the monopolistically competitive firm: occurs where price...
4. For a monopoly firm, marginal revenue (MR) is price (greater/less) than 5. To maximize profits, a monopoly firm picks the quantity at which revenue average revenue) equals {marginal cost/average cost) (marginal (Game Theory/Consumer Theory) is a method for analyzing strategic behavior of oligopoly firms 7. The entry of the second firm under monopolistic competition structure of market shifts the demand curve of the first firm to the (right left). D Focus ch De 9 W 11. Firms in a...
QUESTION 21 If a monopoly situation arises from a perfectly competitive market, the portion of producer surplus that increases in a monopoly is transferred from the perfectly competitive market's deadweight loss o fixed cost. consumer surplus. long-run positive economic profit. QUESTION 22 If a monopolist lowers its price • the quantity demanded remains the same. the quantity demanded decreases the quantity demanded becomes zero. the quantity demanded increases. QUESTION 23 I a monopolist produces to a point at which marginal...
how would you fill out this graph?
Perfect Competition Competition Monopolistic Monopoly Oligopoly Goal of firmsMaximize Profit Rule for maximizing profit MR-MC Can earn economic profits in the short run? Yes Can earn economic profits in the long run? Yes Price taker? Sometimes P2MC Sometimes Price & MC Produces welfare maximizing output? Number of firms? Few 3. (1 point) Consider a world where only blank t-shirts are produced. Draw hypothetical Demand faced by a firm, MR, MC, and ATC curves...
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