Ans) Oligopoly is where few firms dominate the market. There are significant barriers to entry and exit. Eg- cigarettes, aluminium, airlines etc.
Which of the following are characteristics of an oligopoly market? (Check all that apply.) P =...
Which of the following are characteristics of a monopoly market? (Check all that apply.) P = MR at all quantities Many firms in the industry Firms are price takers P > MR at all quantities MR = MC at the profit maximizing quantity Firms are price makers P = MC at the profit maximizing quantity One firm in the industry A few firms in the industry P > MC at the profit maximizing quantity
An oligopoly market structure is distinguished by several characteristics, one of which is mutual interdependence. What are some other characteristics of this market structure? Check all that apply. a. Either identical or differentiated products b. Market control by many small firms c. Market control by a few large firms d. No entry
2. (15 points). The demand function for an oligopolistic market is given by the equation, Q 180-4P, where Q is quantity demanded and P is price. The industry has one dominant firm whose marginal cost function is: MC 12+1Qp, and many small firms, with a total supply function: Qs 20+ P. (a) Derive the demand equation for the dominant oligopoly firm. (b) Determine the dominant oligopoly firm's profit-maximizing out- put and price. (c) Determine the total output of the small...
An oligopoly market structure is distinguished by several characteristics, one of which is market control by a few large firms. What are some other characteristics of this market structure? Check all that apply Mutual interdependence Neither mutual interdependence nor mutual independence Either homogeneous or differentiated products Mutual independence
2. Using the following features, assign each characteristic, to a market / industry type. Note: the characteristic may apply to more than one market / industry type. Be sure to include all market / industry types to which the characteristics applies. -Price makers / searchers -Profit maximizing relationship between MR and MC -Number of sellers (differentiate based on degree of price control)
--The SR Market Supply Curve As long as P ≥ AVC, each firm will produce its profit-maximizing quantity, where MR = MC. At each price, the market quantity supplied is the sum of quantities supplied by all firms. Explain and give an example
Each bin below is labeled with one of four market structures. Identify the characteristics associated with each market structure and place the eight items below in the appropriate bin. Perfect Competition Monopolistic Competition Oligopoly Monopoly A single firm that produces a unique product with no close substitutes. The single firm has considerable control over the price it charges for the product it produces, and the entry of new firms into the industry is blocked. Individual firms are price takers, and...
Fantastique Bikes is a company that manufactures bikes in a monopolistically competitive market. The following graph shows Fantastique's demand curve, marginal revenue curve (MR), marginal cost curve (MC), and average total cost curve (ATC) Place the black point (plus symbol) on the graph to indicate the short-run profit-maximizing price and quantity for this monopolistically competitive company. Then, use the green rectangle (triangle symbols) to shade the area representing the company's profit or loss.Given the profit-maximizing choice of output and price, the...
An oligopolistic market structure is distinguished by several characteristics, one of which is either homogeneous or differentiated products. What are some other characteristics of this market structure? Check all that apply.Market control by a few large firmsMarket control by many small firmsInterdependence among firmsNeither interdependence nor dependence among firmsDifficult entry because barriers are significant
1. The general term for market structures that fall somewhere between monopoly and perfect competition isa. incomplete markets.b. monopolistically competitive markets.c. imperfectly competitive markets.d. oligopoly markets.2. An oligopoly is a market in whicha. there are many price-taking firms, each offering a product similar or identical to the products offered by other firms in the market.b. there are only a few sellers, each offering a product similar or identical to the products offered by other firms in the market.c. the actions...