TRUE/FALSE/UNCERTAIN: Explain as well: All firms competing in oligopoly markets make positive economic profits.
TRUE/FALSE/UNCERTAIN: Explain as well:
All firms competing in oligopoly markets make positive economic
profits.
Homework Answers
Correct Answer:
True
An oligopoly market is characterized by few sellers and high level of entry barriers. In this case, no new sellers are able to enter the market to capitalize upon the positive economic profits earned by the existing sellers in the market. It helps existing players to retain the positive economic profit. Besides, there is a sticky price theory in this market. If one seller reduces the price, then all the sellers reduce the price to prevent the gain to the seller who first decreased the price. But, if on seller increases the price, then nobody follows it. It makes all the seller to make one sticky price and follow that. It creates the earning possibility of positive economic profit.
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TRUE/FALSE/UNCERTAIN: Explain as well:
All firms competing in oligopoly markets make positive economic
profits.
Advertising is most widely seen in monopolistically competitive markets and oligopoly markets. True False In the...
Advertising is most widely seen in monopolistically competitive markets and oligopoly markets. True False In the long run, only monopolists and oligopolists can make positive economic profits. True False When markets do not lead to the most efficient allocation of resources for society as a whole, then there has occurred market failure. True False The most efficient point of production occurs at the bottom of the average total cost (ATC) curve. True False Oligopoly markets are different from other market...
TRUE OR FALSE A few firms with market power selling an identical product and competing over...
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TRUE/FALSE QUESTIONS 23. A few firms with market power selling an identical product and competing over...
TRUE/FALSE QUESTIONS
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True False-Ambiguous and Explain why 6. Suppose that a single-price monopolist bought up all the firms...
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MicroEcon True/False Problem 1: True/False/Uncertain (20 points) Please fully explain your answer. Points are awarded based...
MicroEcon True/False
Problem 1: True/False/Uncertain (20 points) Please fully explain your answer. Points are awarded based on explanations. 1. (4 points) In a two-player game, a Nash equilibrium is the outcome that maximizes the sum of the players' payoffs. 2. (4 points) In a Nash equilibrium in a two-player game, both players must have selected a dominant strategy. 3. (4 points) Repeatedly playing the Prisoner's Dilemma may or may not result in a cooperative solution. 4. (4 points) In the...
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The key distinguishing feature of firms in oligopoly is interdependence. True or False TrueFalse
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Advertising is most widely seen in monopolistically competitive markets and oligopoly markets. True False In the long run, only monopolists and oligopolists can make positive economic profits. True False When markets do not lead to the most efficient allocation of resources for society as a whole, then there has occurred market failure. True False The most efficient point of production occurs at the bottom of the average total cost (ATC) curve. True False Oligopoly markets are different from other market...
TRUE/FALSE QUESTIONS
23. A few firms with market power selling an identical product and competing over price arrive to the competitive equilibrium. 24. In an oligopoly setting, joint profits are the highest when firms act according to a Stackelberg model. 25. In the presence of a negative externality generated by producing a good, a competitive market will produce less of that good than is socially optimal. 26. An example of the tragedy of the commons is when farmers pump more...
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MicroEcon True/False
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