which is not a characteristic of oligopolyglee quarterback behind the scenes

6) Which one of the following characteristics applies to oligopolistic markets? It is calculated by dividing the change in the costs by the change in quantity.read more is the cost of productionCost Of ProductionProduction Cost is the total capital amount that a Company spends in producing finished goods or offering specific services. d) can set its price and output to maximize profits. It continues to behave on the assumption that its new demand (d 1 d' 1 ) will not shift further because the effect of its own decisions on other sellers' demand would be negligible. When firm X increases its price. What are the 4 characteristics of oligopoly? The characteristics of oligopoly include interdependence, product differentiation, high barriers to entry, uncertainty, price setters. What is the Nash equilibrium? 4) Which one of the following industries is the best example of an oligopoly? Their differences can range from. D) 2,750. The presidents friend constructs and sells single family homes. Oligopolistic behavior implies that oligopolists prefer competition ______. 6) In the prisoners' dilemma with players Art and Bob, each prisoner would be best off if A) both prisoners confess. C) Firms in the cartel will want to raise the price. E) None of the above. B) equilibrium price and quantity will be insensitive to small cost changes. e) is always upward sloping, a) depends on the actions of rivals to price changes, The four-firm concentration ratio understates the competition in the aluminum industry because aluminum competes with copper in many applications. In the credit card industry, for example, Visa and MasterCard have a duopoly.read more. In the graph, the price elasticity of demand is ______ below the price of P0. Advertising benefits society by ______. *localized markets, Barriers to entry into an oligopoly most resemble those of a ______. C) the HHI for the industry is small. However, at this price profit of firm B is not maximized. True or false: A one-time game occurs when firms will choose their pricing strategy for today without concern about future interactions with their rivals. a) Affect profits and influence the profits of rival firms Keep its price constant and thus increase its market share B. Characteristics of an oligopoly The market has been shared equally by firms A and B The cost of firm A is lower than firm B Profit maximizing the output of firms A is XA and the price is PA Firm B adopts this price and sells XB (=XA) amount. Over a long time period, cheating ______ collusive oligopolies The distinctive feature of an oligopoly is interdependence. B) the firms may legally form a cartel. B) a monopoly. b) They try to avoid losses by raising prices in conjunction with rival firms. However, at this price profit of firm B is not maximized.The profit-maximizing price of firm B isPB (>PA) and the quantity is Xbe (PA) and the quantity is Xbe. Question: Which of the following is NOT a characteristic of an oligopoly? C) Miller has a dominant strategy but Bud does not. E) unknown. *The firm's demand curve will shift further to the right. B) the courts. they will make more pricing low than if they both price high. A. cutting prices A. D) Dr. Smith advertises only if Dr. Jones advertises. A market is deemed oligopolistic or extremely concentrated when it is shared between a few common companies. The factors that determine a market structure include the number of businesses, control over prices, and barriers to market entry. E) Firms set prices. Consequently, each firm must condition its behavior on the behavior of the other firms. b) Firms may sell a homogeneous product. Each firm faces a downward-sloping demand curve. c) threatens 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. E)Firms are profit -maximizers. E) none of the above. Mutual interdependence solely means that they base their decisions on how they think their rivals will react. Which of the following is not a characteristic of oligopoly? View full document. (Enter one word for each blank. d) both productive efficiency and allocative efficiency, b) neither productive efficiency nor allocative efficiency. O B. B) other firms will lower theirs. C) Dr. Smith advertises only if Dr. Jones doesn't advertise. d) through advertising C. La sociedad se encuentra dividida entre capitalistas, terratenientes y trabajadores. b) collusion model at least $10 million. An oligopolistic market exhibits the followingoligopoly features: It raises barriers for new entrants to enter into the respective sector. Nokia, however, offers Android phones with the same features and almost similar prices. It is an essential component of marketing strategy leading to brand recognition and business growth. a) productive efficiency but not allocative efficiency E) A and C. 8) A merger is unlikely to be approved if ________. c) kinked-demand b) Interindustry competition c) Affect costs and influence the supply of rival firms Since there are few dominating firms which are having full knowledge about the market, the decisions on the price and output of a firm depend on the reactions of other firms. D) entry into the industry of rival firms will have no impact on the profit of the cartel. Meanwhile, all firms know that their decisions affect other firms sales and profit, hence they necessarily react against those decisions. In this market, there are a few firms which sell homogeneous or differentiated products. Determinateness of demand curve is a part of law of demand and does not fall in oligopoly. C) the firms keep profits and prices so low that no rivals are . Pure oligopoly - have a homogenous product. $6. An oligopoly is an industry dominated by a few large firms. a) Its demand curve is downward-sloping O B. 13) A tit-for-tat strategy can be used *providing misleading information 6) According to the kinked demand curve theory of oligopoly, at the quantity corresponding to the kink, the firm's c) They move leftward and upward to a higher point on the average-total-cost curve. Which of the five do you feel is the most important? b) Lower prices, but greater output E) equilibrium price and quantity will be insensitive to small demand changes. Oligopoly. Products traded or traded homogeneously become the second characteristic of oligopoly. B) the firms may legally form a cartel. *The firm's profits will be lower. OA. c) product development and advertising are relatively inexpensive As a result, the implementation of the policy has been marginalizing the rural settled peasant . *The firm's profits will be lower. This market structure can be competitive and sometimes less competitive. An oligopoly (from Greek , oligos "few" and , polein "to sell") is a market form wherein a market or industry is dominated by a small group of large sellers (oligopolists). *To increase control over the product's price 300 laborers were employed at the plant that month. Marketers highlight the distinguishing features in the product commonly through packaging or a good design, which helps communicate the benefitting factors to the shoppers. Patent rights or accessibility to technology may exclude potential competitors. 10) In the dominant firm model of oligopoly, the dominant firm produces the quantity at which marginal revenue equals e) increasing search time. c. Competing firms can enter the industry easily. E) rivalry of the participants leads to the worst solution from their point of view. Also, they rely on free-market forces to earn higher profits than a competitive market. E) cheat on each other. C) Trick cheats, while Gear complies with the agreement. Therefore, necessarily they tend to react. c) Localized markets It thus limits the competition to only those already in the group. D) a prisoner has no incentive to confess to his crime, and stands a greater chance of not going to prison. A. We reviewed their content and use your feedback to keep the quality high. But in practice, there are several barriers to entre which make it quite difficult for the new firms to join the industry or market. The need to spend a huge amount of money on name recognition and market reputation may discourage entry by new firms. The concentration ratio is a tool that measures the market share leading companies have in an industry. As a result, each firm obligates to adhere to pre-determined price and quantity/output levels to maximize revenue. b) There are barriers to entry into the market. Oligopolies are typically composed of a few large firms. So here we can see a one-way interdependence pattern. b) Mutual interdependence A dominant-bank oligopoly confronting a competitive fringe There are two sets of banks: dominant banks and fringe banks. When the number of firms in an oligopolistic industry increases from 3 to 10, it is ______ to collude. That means higher the price, lower the demand. The concept serves to be useful for companies focusing on multiple product lines and operating more than one business unit at a time. Experts are tested by Chegg as specialists in their subject area. e) Firms may sell a differentiated product. d. 2. . B) each member will face the temptation to cheat on the cartel price to increase its sales and profit. 8) Firm X is competing in an oligopolistic industry. oligopoly, monopoly, monopolistic competition, pure competition pure competition, monopolistic competition, oligopoly, monopoly. 11) Because an oligopoly has a small number of firms, A) each firm can act like a monopoly. a) collusion; cartel *interindustry competition B) of barriers to entry. B) Firms are profit-maximizers.C) The sales of one firm will not have a significant effect on other firms. They believe in making customers stick to their brands for core competenciesCore CompetenciesThe core competencies in business refer to its resources and unique fundamental capabilities that distinguish it from market competitors. C) average total cost. b) Strategies are chosen for a single time period. c) may be less desirable because they are not regulated by government to protect consumers Economics questions and answers. Without collusion, if a firm incorrectly assumes that its rivals will charge the same price but its rivals actually charge a lower price, the firm's demand curve will shift to the ____. A) This game has no dominant strategies. D) the four-firm concentration ratio for the industry is small. E) other firms will not raise theirs. b) depends on the firm's cost structure Each firm is so large that its actions affect market conditions. E) None of the above. C) "Construction prices in this town seem to be always set by Big Jim's Dandy Construction Company." a) is needed in a) Cartel Advertising can reduce efficiency by ______. In second-degree price discrimination the monopolist offers a menu of quantity-based pricing options designed to induce customers to self-select based on how highly they value the product. What kind of game is it when firms choose their optimal pricing strategy today without worrying about possible interactions in the future? Oligopoly. d) its rivals match price decreases but ignore price increases, d) its rivals match price decreases but ignore price increases, Which of the following is true about the oligopolist if rivals match a price cut but ignore a price increase? A) behave competitively. Advertising can persuade consumers to pay higher prices for products that are well _____ (one word) instead of purchasing unadvertised products with lower prices. d) Oligopolistic collusion, Compared to monopolies, oligopolies ______. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Copyright 2023 . Which of the following statements correctly describes Dr. Smith's strategy given what Dr. Jones may do? You'll get a detailed solution from a subject matter expert that helps you learn core concepts. A) only Bob would like to change his decision. C) The sales of one firm will not have a significant effect on other firms. E) the firms are interdependent. A) average total cost curve is discontinuous. Based on her experience with past negotiations, Marilyn knows that lenders are concerned about DTRs debt to equity . A) there are fewer than 6 firms in a market E) All of the above. Which of the following is characteristic of oligopoly, but not of monopolistic competition? what are the 5 characteristics of an oligopoly? D) Bob denies and Art confesses. b) strengthens *To increase market share B) is not; to comply when the other firm cheats and to cheat when the other firm complies 21) It is difficult to maintain a cartel for a long period of time. *mutual interdependence In a(n) _____ game one firm moves first, committing to a strategy and then the rival firm responds. E) rules, strategies, payoffs, and outcome. ) a- Compute the Cournot equilibrium total quantity, price, quantity for each firm, and . *Large capital investment A) in a single-play game or a repeated game. 9) Which is not a characteristic of oligopoly? Firm 1 cost function is TC (9) = 20 + 12q + q, while firm 2 cost function is TC (9) = 50 +8q2 + q . Four characteristics of an oligopoly industry are: Few sellers. The more concentrated a market is, the more likely it is to be oligopolistic. They collude and agree to share the market equally. Oligopolies are typically composed of a few large firms. 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. These firms are large enough that their quantity influences the price and so impacts their rivals. a) prices; uncertainty; increase Price 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. D) a firm in perfect competition. 6) Wal-Mart follows the kinked demand curve model of oligopoly. It is assumed that all of the sellers sellidentical or homogenous products. 26) Refer to Table 15.3.4. La renta de la tierra de primera calidad ser siempre superior a la renta de la tierra de segunda categora. It determines the law of demand i.e. d) is always kinked As in an oligopoly market, the decision of one firm influences the process and working of another firm. A) Each firm has an incentive to collude. c) Firms' advertising decisions are interdependent. complexes. D. El desempleo voluntario hace que no se produzca el crecimiento econmico. *Ownership and control of raw materials D) payoffs E) a cartel. Why is collusion desirable to oligopolistic firms? D) the industry is government regulated *Reduce uncertainty a) The possibility of price wars diminishes and profits are maximized. Because of this, every firm takes decisions very carefully by considering the possible reactions of the rival firms. It is a reflection of quantity/output performance against cost/revenue performance. While adopting the leaders price, if firm B supplies less amount than XB which needs to maintain the equilibrium price, the leader will push to a non-profit maximizing position. 3) The Nash equilibrium for a sequential game in a contestable market with locked-in first stage prices results in the students used balls . A) a natural monopoly. What is oligopoly and its characteristics? a) purely competitive market Consider a simple case of three firm oligopoly. B) This game has no Nash equilibrium. However, firm B follows the leaders price and equilibrium quantity in order to avoid the uncertainty that can be arisen. A) "Gas prices in this town always go up and down together." For example, when a government grants a patent for an invention to one firm, it may create a monopoly. 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. A) there are only two producers of a particular good competing in the same market Examples of oligopolies Car industry - economies of scale have caused mergers so big multinationals dominate the market. 1) The market structure in which natural or legal barriers prevent the entry of new firms and a small number of firms compete is, 2) Suppose that industry A consists of four firms who collectively control 96 percent of total sales in the market. a) The number of average-sized firms in an industry needed to produce sales equivalent to the four largest firms While AI integration in the medical, legal, and financial sectorsFinancial SectorsThe financial sector refers to businesses, firms, banks, and institutions providing financial services and supporting the economy. If the products of the firms are homogeneous then the interdependence will tend to be strong because of the perfect substitutability of the products of the firms. Based on the payoff matrix, if the two firms agreed to both follow national strategies there is an incentive for them to cheat. A) 0. c) The percentage of total industry sales accounted for by the four largest firms Oligopolyis a market structure *manipulating consumer preferences d) The market contains a few large producers. East Asian regimes tend to have similar characteristics First they are orien. 11) Once a cartel determines the profit-maximizing price, D) specify how average cost is determined. b) The possibility of price wars diminishes, but profits might be lower. 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. *world trade Oligopolists offer comparable products or services, so they control prices rather than the market. $3. Oligopoly refers to a market situation or a type of market organisational in which a few firms control the supply of a commodity. But the other firms act considering the interdependence. Product differentiation refers to making a product look attractive and different from other products in the same class. 8) A weakness of the kinked demand curve theory of oligopoly is that it does not These data are as follows: 30.334.531.130.933.731.933.131.130.032.734.430.134.631.632.432.831.030.230.232.831.130.733.134.431.032.230.932.134.230.730.730.730.630.233.436.830.231.530.135.730.530.630.231.430.730.637.930.334.130.4\begin{array}{lllll}30.3 & 34.5 & 31.1 & 30.9 & 33.7 \\ 31.9 & 33.1 & 31.1 & 30.0 & 32.7 \\ 34.4 & 30.1 & 34.6 & 31.6 & 32.4 \\ 32.8 & 31.0 & 30.2 & 30.2 & 32.8 \\ 31.1 & 30.7 & 33.1 & 34.4 & 31.0 \\ 32.2 & 30.9 & 32.1 & 34.2 & 30.7 \\ 30.7 & 30.7 & 30.6 & 30.2 & 33.4 \\ 36.8 & 30.2 & 31.5 & 30.1 & 35.7 \\ 30.5 & 30.6 & 30.2 & 31.4 & 30.7 \\ 30.6 & 37.9 & 30.3 & 34.1 & 30.4\end{array} B) raise the price of their products. The presence of a small number of companies in an oligopoly market structure makes it highly concentrated. B) there are two producers of two goods competing in an oligopoly market Demand and cost differences, the number of firms in the industry, and the potential for cheating all represent _____ (one word) to collusion. D) increase the amount they produce. A) Dr. Smith advertises no matter what Dr. Jones does. a) They do not achieve allocative efficiency because their average total cost exceeds price. a) are always more efficient The core competencies in business refer to its resources and unique fundamental capabilities that distinguish it from market competitors. *Large capital investment *The firm's demand curve will shift further to the left. When the negotiations began, DTR had debt of$80 million and equity of $50 million. C) lower the price of their products. B) raise the price of their products. Instead, they try different approaches, such as rewarding customers for their loyalty, differentiating their product offerings, providing sales promotion schemes, acting as sponsors, etc. What are the positive effects of large oligopolists advertising? EconTips 2022 - All Right Reserved, Designed and Developed by Harshasoft, Perfect Competition: Definition, Graphs, short run, long run, Monopoly Price discrimination: Types, Degrees, Graphs, Examples, Monopolistic Competition Equilibrium| Long-run| Short-run. c) dominant firms c) Nash equilibrium 14) The kinked demand curve model A 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. Each firm is so large that its actions affect market conditions. 7) Why might only a few firms dominate an oligopolistic industry? Oligopolists in an oligopolisticmarket structure agree not to raise their prices but match only price cuts to avoid price rigidity. C) the same as a monopoly. Required fields are marked *. The equilibrium ________ a dominant strategy equilibrium because the strategy in this game is for a firm ________. Oligopoly is one of the four market structures and identified by a small number of big businesses operating in a particular industry. 5) Which one of the following characteristics applies to oligopolistic markets? b) demand; losses; increase After each player chooses his or her best strategy and sees the result, Pure (Perfect) Competition. a) It could be downward or upward sloping. debt to equity ratio and that it will be reversed whenever the presidents friend wants the D) neither is protected by high barriers to entry. a) low to receive a payout of $15 d) percentage of industries that are oligopolies, c) sales of the largest firms in an industry, Firms in oligopolistic industries are "price makers" because such firms ______. 13) Complete the following sentence. The labor productivity at this plant is known to have been 0.100.100.10 vans per labor-hour during that month. 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. Barriers to entry into an oligopoly most resemble those of a ______. 3) Canada's anti-combine law is enforced by c) give the appearance of increased competition C) is; to cheat regardless of the other firm's choice A) Each firm faces a downward-sloping demand curve. C) if Jane does not change her decision, Bob would like to change his. However, DTR does not intend to build any single family homes.

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