The contestable market model of oligopoly bases pricing and output decisions on: Multiple Choice A. the...
The contestable market model of oligopoly bases pricing and output decisions on:
Multiple Choice
A. the threat of new entrants into the market.
B. market structure.
C. the degree of product differentiation.
D. market share.
Homework Answers
The contestable market model of oligopoly bases pricing and output decisions on the basis of the percentage of their market share.
Answer-D
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The contestable market model of oligopoly bases pricing and
output decisions on:
Multiple Choice
A. the...
How does contestable markets theory challenge orthodox market structure theory? a. Contestable markets theory emphasizes product...
How does contestable markets theory challenge orthodox market structure theory? a. Contestable markets theory emphasizes product differentiation; orthodox market structure theory does not. b. Contestable markets theory argues that firms do not maximize sales; orthodox market structure theory argues that they do. c. Orthodox market structure theory places much greater weight than contestable markets theory on the number of firms in an industry as a major factor in determining a firm's behavior. d. Contestable markets theory emphasizes nonprice competition; orthodox...
Describe Amazon organization. State its commodity, business model, target market, specialization, product differentiation, pricing strategy, and...
Describe Amazon organization. State its commodity, business model, target market, specialization, product differentiation, pricing strategy, and market share. In addition, describe the market structure it operates in (monopoly, oligopoly, monopolistic competition, or perfect completion) and state the characteristics of this business that make it fall into this market structure. Moreover, state the organization’s main competitors and the strategies it uses to remain competitive in the market. In addition, state that one characteristic that its commodity has that makes them unique...
QUESTION 1 Which of the following is always a characteristic of the oligopoly market structure? Many...
QUESTION 1 Which of the following is always a characteristic of the oligopoly market structure? Many sellers, each small in size relative to the overall market. Few sellers. All sellers produce identical products. Easy, low-cost entry and exit. QUESTION 2 The industry that most closely approximates the conditions of the oligopoly model is: Restaurant. Retail clothing. Airlines in the U.S. The local cable company. QUESTION 3 In which of the following market structures must the price and output decisions of...
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.
In a perfectly competitive market, which of the following is a primary factor influencing pricing decisions?...
In a perfectly competitive market, which of the following is a primary factor influencing pricing decisions? Select one: a. cost of production b. availability of raw materials in the market c. information on competitor's cost structure d. value customers place on product
The kinked demand curve explains the observation that in oligopoly markets Multiple Choice Rivals match price...
The kinked demand curve explains the observation that in oligopoly markets Multiple Choice Rivals match price increases. 0 Prices may not change even in the face of cost increases. 0 Practice product differentiation 0 C) Rivals do not match price reductions 0 O Some companies co not play by the rules
48) 48) A merger between firms that are in the same industry is called a A) vertical merger C) ho...
48) 48) A merger between firms that are in the same industry is called a A) vertical merger C) horizontal merger. B) conglomerate merger D) none of the above. 49) 49) In oligopoly, any action by one firm to change price, output, or quality causes A) no reaction from the other firms. B) a reaction by other firms. C) loss of market share by the acting firm D) a profit gain for the other firms. 50) 50) The industry concentration...
A differentiation strategy works best in which of the following market circumstances? Multiple Choice when buyers...
A differentiation strategy works best in which of the following market circumstances? Multiple Choice when buyers incur low costs in switching to rnval brands when most competitors are resorting to clever advernising to try to set their product offerings apart when new and improved products are introducedl frequently when there are many ways to different ote the product or service that have value to buyers when buyers have o low degree of bargaining power and purchase the product frequenty
Suppose a single firm produces all of the output in a contestable market. The market inverse...
Suppose a single firm produces all of the output in a contestable market. The market inverse demand function is P= 400-4Q, and the firm's cost function is G Price: $ | 1 Profits: $ 10Q. Determine the firm's equilibrium price and corresponding profits. You are the manager of a firm that competes against four other firms by bidding for government contracts. While you believe your product is better than the competition, the government purchasing agent views the products as identical...
Which of the following statements is true about the factors that affect pricing decisions? Select one:...
Which of the following statements is true about the factors that affect pricing decisions? Select one: a. Information about competitors' technologies is not useful for pricing decisions. b. Information about a competitor in a perfect market affects pricing decisions. c. Increase in price of a substitute product does not affect pricing decisions. d. Managers must always be aware of the competition when pricing their products
The kinked demand curve explains the observation that in oligopoly markets Multiple Choice Rivals match price increases. 0 Prices may not change even in the face of cost increases. 0 Practice product differentiation 0 C) Rivals do not match price reductions 0 O Some companies co not play by the rules
48) 48) A merger between firms that are in the same industry is called a A) vertical merger C) horizontal merger. B) conglomerate merger D) none of the above. 49) 49) In oligopoly, any action by one firm to change price, output, or quality causes A) no reaction from the other firms. B) a reaction by other firms. C) loss of market share by the acting firm D) a profit gain for the other firms. 50) 50) The industry concentration...
A differentiation strategy works best in which of the following market circumstances? Multiple Choice when buyers incur low costs in switching to rnval brands when most competitors are resorting to clever advernising to try to set their product offerings apart when new and improved products are introducedl frequently when there are many ways to different ote the product or service that have value to buyers when buyers have o low degree of bargaining power and purchase the product frequenty
Suppose a single firm produces all of the output in a contestable market. The market inverse demand function is P= 400-4Q, and the firm's cost function is G Price: $ | 1 Profits: $ 10Q. Determine the firm's equilibrium price and corresponding profits. You are the manager of a firm that competes against four other firms by bidding for government contracts. While you believe your product is better than the competition, the government purchasing agent views the products as identical...
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