You are watching: Three major means of collusion by oligopolists are
1) Answer is B. Noncollusive oligopoly. Kinded demand and also Marginal Revenue curve are found just in Oligopoly. 20) Answer is C. When an in…View the full answer
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Transcribed photo text: Question 20 If tbelow are significant economic climates of range in an market, then firms should differentiate their products to earn financial earnings. a firm that is big will certainly need to charge a higher price than will certainly a small firm. a firm that is huge might be able to create at a reduced unit expense than deserve to a little firm. enattempt to that sector will certainly be basic. Firm Market Share (%) A 20 B 20 с 20 D 20 E 10 F 10 The sector defined by these information is O a pudepend competitive sector. a pure monopoly. an oligopoly. a monopolistically competitive market. The kinked-demand also curve version of oligopoly is helpful in explaining why oligopoly firms execute not change their prices frequently. the means that collusion functions. the process whereby oligopolists merge through one an additional. why oligopolistic prices and outputs are extremely sensitive to changes in marginal expense. e MC Dollars ATC a D 0 f MR g hj Output Refer to the diagram. Equilibrium output is h. j Of. 8 Oligopolistic sectors are identified by a couple of leading firms and low entry barriers to brand-new firms in the sector. a few leading firms and substantial enattempt obstacles to brand-new firms in the market. a couple of dominant firms and no entry obstacles to brand-new firms in the market. a big variety of firms and also low entry barriers to new firms in the sector. Game theory can be supplied to show that oligopoly firms experience economic climates of scale. might be either homogeneous or identified. can increase their earnings through collusion. rarely consider the potential reactions of rivals. e MC Dollars ATC మిరాగి 0 f MR g hi Output Refer to the diagram. In equilibrium the firm need to close dvery own in the short run. is making an financial profit of bd per unit (of output produced). is making an economic profit of ad per unit (of output produced). is incurring a loss. МС d Dollars ATC DOO D 0 f MR g hj Output Refer to the diagram. This firm's demand also and also marginal revenue curves are based on the presumption that rivals will certainly ignore a price rise yet enhance a price decrease. rivals will certainly enhance a price rise however ignore a price decrease. rivals will certainly match both a price boost and a price decrease. the firm has actually no prompt rivals. MC d Dollars ATC మిరాగి D f MR g hj Output Refer to the diagram. Equilibrium price is O d. C. e. b. Pricing and output decisions of firms are more hard to analyze in oligopoly than other market models bereason of common interdependence of firms and also the truth that oligopoly outcomes are less certain than in various other industry models. the number of firms is so huge that industry behavior cannot be accurately predicted. the marginal expense and marginal revenue curves of an oligopolist play no part in the determicountry of equilibrium price and quantity. unchoose the firms of other sector models, it cannot be assumed that oligopolists are profit maximizers. Three major means of collusion by oligopolists are informal understandings, P = MC pricing, and mutual interdependence. cartels, informal understandings, and price management. sector sharing, shared interdependence, and also product differentiation. cartels, kinked-demand also pricing, and also product differentiation. Which of the complying with statements best explains the Net industry structure? It comprises firms that have actually been granted monopolies by the government and also are extremely regulated. Tright here are a few huge firms, such as Google, Facebook, and also Amazon, each conquering a specific sector yet always trying to gain sector share in one more sector. Tbelow are a few huge firms, such as Google, Facebook, and also Amazon, however they each occupy their very own niche and don't infringe on the others' regions. It is very competitive, via many type of suppliers and also no firms in a dominant place. We would suppose a cartel to achieve O abundant performance yet not allocative performance. allocative effectiveness but not fertile effectiveness. neither allocative effectiveness nor abundant efficiency. both allocative effectiveness and also fertile performance.