An illegal monopoly must be selling a product that has no close(l0) . This will
ID: 1212892 • Letter: A
Question
An illegal monopoly must be selling a product that has no close(l0) .
This will make his demand curve very (11)___________
There must also be (12)_____________to keep out competition from entering the market of the monopoly.
The monopolist will restrict his (13)____________to get the highest price.
Long run market demand must be (14)______for a Cartel to survive and do well.
Long run market supply must be (15)________for a Cartel to survive and do well.
According to Hotellings Paradox, an industry with a small number of sellers with large market shares will often end up offering products that are highly (16)_______
and are aimed at the (17)_______of the market.
When firms in an oligopoly have a tacit agreement to "follow the leader" in raising prices, iit is called (18) _ Oligopolies often have a demand curve that is (19)__________above the present price because if they (20)______their prices, their rivals will NOT match them.
Their demand curve is (21)_________ below the present price because if they
(22)____ their prices the rival firms WILL do the same thing.
23) Under Monopolistic Competition, firms will produce with _______capacity in the long run.
24) Firms in an Oligopoly usually have very ________start up costs for advertising and marketing.
25) The type of industry where firms produce “differentiated” products is an ________________
Explanation / Answer
An illegal monopoly must be selling a product that has no close substitutes(l0) .
This will make his demand curve very inelastic (11)
There must also be (12) product exclusiveness to keep out competition from entering the market of the monopoly.
The monopolist will restrict his (13) quantity to get the highest price.
Long run market demand must be (14)______for a Cartel to survive and do well.
Long run market supply must be (15)________for a Cartel to survive and do well.
According to Hotellings Paradox, an industry with a small number of sellers with large market shares will often end up offering products that are highly (16) differentiated and are aimed at the (17)_______of the market.
When firms in an oligopoly have a tacit agreement to "follow the leader" in raising prices, iit is called (18) cartel Oligopolies often have a demand curve that is (19) relatively elastic above the present price because if they (20) increase their prices, their rivals will NOT match them.
Their demand curve is (21) inleastic below the present price because if they (22)_lower their prices the rival firms WILL do the same thing.
24) high and aggressive
25) monopolistic competition
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.