), Which of the following is true about the oligopolist if rivals match a price cut but ignore a price increase? Pure oligopoly - have a homogenous product. Their differences can range from. *Large capital investment Which of the following are characteristics of oligopolistic markets D) Bob denies and Art confesses. a. small number of firms b. has some pricing power c. the firms are interdependent d. the good produced may be unique or not e. low barriers to entry; Which of the following is not a characteristic of an oligopolistic market structure? a) The same as monopolistic competition a) productive efficiency but not allocative efficiency That is, the large firm acts independently. D) marginal revenue curve is discontinuous. D) a prisoner has no incentive to confess to his crime, and stands a greater chance of not going to prison. Oligopoly: Types and Features - GeeksforGeeks They are 5) Which one of the following characteristics applies to oligopolistic markets? . A) Each firm faces a downward-sloping demand curve. Solved . Which of the following is not a characteristic - Chegg C) the good produced in the market has been deemed a necessity A) a firm in an oligopoly market. For example, it has been found out that insulin and the electrical industry are highly oligopolist in the US. In a(n) _____ game one firm moves first, committing to a strategy and then the rival firm responds. *manipulating consumer preferences 2003-2023 Chegg Inc. All rights reserved. (Pure) Monopoly 3. Each firm faces a downward-sloping demand curve. Imperfect or Differentiated Oligopoly: ADVERTISEMENTS: b) through pricing d) Oligopolistic collusion, Compared to monopolies, oligopolies ______. 9) Which isnota characteristic of oligopoly? d) monopolistically competitive market, The study of how one firm reacts to the actions taken by another firm or individual when implementing a strategy is called _____. C) both have MR curves that lie beneath their demand curves. a) increasing firm profits d) does not influence. Production Cost is the total capital amount that a Company spends in producing finished goods or offering specific services. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. Oligopolyis a market structure Based on the figure, if RareAir honors an agreement with Uptown to price high, and Uptown needs to increase profits due to stockholder pressure, Uptown will price ______. Any decision taken by a firm in order to increase its sales would adversely affect the sales and hence profit of the other firms. d) are more efficient because cartels and collusion is always successful Products traded or traded homogeneously become the second characteristic of oligopoly. Market players in an oligopolistic market focus on non-price competition, ensure their brands are uniquely identifiable and apply hidden advertising tactics. Share with Email, opens mail client d) both productive efficiency and allocative efficiency, b) neither productive efficiency nor allocative efficiency. B) other firms will lower theirs. a) purely competitive market 6) Wal-Mart follows the kinked demand curve model of oligopoly. Which one of the following is the most important reason? Firm B adopts this price and sells XB(PDF Market Structure: Oligopoly (Imperfect Competition) Gentleman's agreements are a type of covert collusion, occurring in social settings where a product's _____ is agreed upon and market shares are determined by _____ competition. True or false: Firms in an oligopoly always produce a homogeneous product. B) both can earn an economic profit in the long run. c) through collusion 1) All games share four common features. C) the firms keep profits and prices so low that no rivals are . c) horizontal or perfectly elastic Therefore, the competing firms will be aware of a firm's market actions and will respond appropriately. D) payoffs Which of the following is characteristic of oligopoly, but not of monopolistic competition? Based on the payoff matrix, if the two firms agreed to both follow national strategies there is an incentive for them to cheat. D) assumes that competitors will match price cuts and ignore price increases. The distinctive feature of an oligopoly is interdependence. 18) A market with a single firm but no barriers to entry is known as The firms produce differentiated products. *localized markets, Barriers to entry into an oligopoly most resemble those of a ______. a) Cartel The distinguishing characteristics of oligopoly are briefly explained below: 1. It contains well written, well thought and well explained computer science and programming articles, quizzes and practice/competitive programming/company interview Questions. 2. Marilyn has been involved in negotiations between DTR and prospective lenders as DTR b) interindustry competition 11) Once a cartel determines the profit-maximizing price, a market structure characterized by a small number of interdependent sellers is called a oligopoly Which of the following is NOT a common characteristic of oligopoly? It is one of the four market situations, including perfect competitionPerfect CompetitionPerfect competition is a market in which there are a large number of buyers and sellers, all of whom initiate the buying and selling mechanism. 6) In the prisoners' dilemma with players Art and Bob, each prisoner would be best off if A) both prisoners confess. c) regulated monopoly *The firm's profits will be higher. B) a contestable market. The concept serves to be useful for companies focusing on multiple product lines and operating more than one business unit at a time. d) lowering the cost of production The point at which an upward-sloping marginal cost curve intersects a downward-sloping marginal revenueMarginal RevenueThe marginal revenue formula computesthe change in total revenue with more goods and units sold." A(n) _______ (Enter one word) is a market dominated by a few large producers of a homogeneous or differentiated product. A. cutting prices a) The number of average-sized firms in an industry needed to produce sales equivalent to the four largest firms D) There is more than one firm in the industry. C) specify how marginal cost is determined. Which of the following is not a characteristic of oligopoly? Question: Which of the following is NOT a characteristic of an oligopoly? Typically, this means that at least 40% of the market is controlled by a few firms. b) depends on the firm's cost structure c) its rivals ignore price increases and price decreases 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. a) Kinked-demand curve model C) "If only Wally and I could agree on a higher price, we could make more profits." 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. 5.3.5 Apply Concepts of Oligopoly and Oligopoly Models .pdf. Price collusion caused by market transparency and other factors enables oligopolists to raise their barriers to market entry for new competitors, such as high capital requirements, legal obligations, and consumer loyalty.
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