SECTION, OLIGOPOLY istic industries are characterized by: Oligopolistie i b. d.
ID: 1195444 • Letter: S
Question
SECTION, OLIGOPOLY istic industries are characterized by: Oligopolistie i b. d. oligop few dominant firms and independent decision making. 1. large number umber of firms and independent decision making a large n a few dom a large number of firms and interde inant firms and interdependent decision making. amber of firms and interdependent decision making. Firms in oligopolistic markets: a. b. , Ftend to earn zero economic profit in the long run due to high have no control over the price charged for their product consider the reaction of other firms in the market when making a pricing and output decision. maximize profit where marginal revenue is equal to minimum marginal cost. g run due to high barriers to entry d. echaracteristic that distinguishes oligopoly from the other market models is 3. The the existence of barriers to entry interdependence among firms in pricing and output decisions. eproduct differentiation c. the a the ability of firms to earn long-run economic profits. d. All of the following markets fit the characteristics of an oligopoly except Breakfast cereals a. b. Cell phones c. Automobiles Fresh fruit 5. Oligopoly is a market st Oligopoly is Oligopoly is a market structure characterized by: a. differentiated products in all cases. b. identical products in all cases. c. a small number of large firms. d. a large number of small firms. The Organization of Petroleum Exporting Countries (OPEC) is an example of a. a competitive oligopoly b. a cartel. c. tacit collusion. d. all of the above. Industry profit is likely to be lowest in an industry that: a. has a clear price leader who is followed by all of the other firms. b. adheres to a cartel agreement. c. is a contestable market. d. has significant barriers to entry. 1.Explanation / Answer
1.
e. a large dominant firms and interdependent decision making
Because an oligopolistic firm is relatively large compared to the overall market, it has a substantial degree of market control. Market control means that interdependence among firms in an industry.
2.
c. consider the reaction of other firms in the market when making a pricing and output decisions.
when making decisions relating to price or output, each firm has to take into consideration the likely reaction of rival firms
3.
b. interdependence among firms in pricing and output decisions
when making decisions relating to price or output, each firm has to take into consideration the likely reaction of rival firm
4.
d.Fresh fruit
5.
c. a small number of large firms
Oligopoly is a market structure characterized by a small number of relatively large firms that dominates an industry.
6.
b. cartel
a cartel is a formal agreement among competing firms
7.
c. is a contestable market
contestable market is one with zero entry and exit costs.
8.
a. Can earn positive economic profit in the LR due to the existence of barriers to entry like economies of scale
9.
a. incurring a short run economic loss, but is minimizing its losses by producing in the short run
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