6) Which of the following is found ONLY in oligopoly? A) One firm\'s actions aff

Question

6) Which of the following is found ONLY in oligopoly? A) One firm's actions affect another firm's profit. B) Sellers face a downward-sloping demand curve for their product. C) The firm's demand curve is horizontal. D) Entry into the industry is blocked. E) Producers who sell identical products. 7) A cartel is A) a market structure with a small number of large firms. B) a market with only two firms. C) a market structure with a large number of small firms. D) another name for an oligopoly 8) A two-firm oligopoly is called a A) duopoly B) cartel. C) monopolistic oligopoly. D) double monopoly. E) dual-market. 9) The tool that economists use to analyse the mutual interdependence of oligopolies is A) the efficient scale. B) game theory C) the HHI D) economies of scale. E) the four-firm concentration ratio.

Explanation / Answer

Answer 6 : Oligopoly has a characteristics that all firms in an industry have an interdependent firm. One firm action affect another firm profit. It means that in the market structure where there is an output decision and pricing decision are taken together.

Answer 7 : A cartel is a group of firms acting together to raise price, decreases output and increases economic profit. A cartel is a structure where there all firm work together.

Answer 8 : A two firm Oligopoly is called duopoly. Duopoly means two supplier dominate the market. Duopoly market is available in the market.

Answer 9 : The tool that economics used to analysis the mutual interdependence of Oligopoly is game theory. Game theory shows the choice between the analysis the strategic dealing with competitive situation.

Answer 10 : A Nash equilibrium is a named after the Noble price winner economist - John Nash and occurs when each players chooses the best strategy of the other player in particular situation.

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