which is not a characteristic of oligopoly which is not a characteristic of oligopoly

In December, General Motors produced 6,600 customized vans at its plant in Detroit. 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? *world trade Firm 1 cost function is TC (9) = 20 + 12q + q, while firm 2 cost function is TC (9) = 50 +8q2 + q . d) greater than or equal to 60%, How can oligopolistic firms influence their profits and the profits of their rivals? A) Strategic Independence The number of suppliers in a market defines the market structure. D) Dr. Smith advertises only if Dr. Jones advertises. 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? Based on her experience with past negotiations, Marilyn knows that lenders are concerned about DTRs debt to equity D) the four-firm concentration ratio for the industry is small. b) greater than or equal to 50% Their differences can range from. In the scenario above, the market is. We unlock the potential of millions of people worldwide. c) kinked-demand D) in neither a repeated game nor a single-play game. It is calculated by dividing the change in the costs by the change in quantity. D)There is more than one firm in the industry. *localized markets, *dominant firms Patent rights or accessibility to technology may exclude potential competitors. You can calculate it by adding Direct Material cost, Direct Labor Cost, & Manufacturing Overhead Cost. 26) Refer to Table 15.3.4. Collusion becomes more difficult as the number of firms ____. Due to minimal competition, each of them influences the rest through their actions and decisions. For example, the existing firms might threaten to reduce the price drastically if entry occurs. B) potential entrants entering and incurring economic loss. If a firm assumes that its rivals will match all price changes, but the firm's rivals actually charge a lower price what are the potential consequences? Following are the characteristics of oligopoly: Interdependence. C) one prisoner has no chance to be acquitted since there is no other prisoner to support his testimony. a) Demand is highly elastic below the going price O B. read more, market demand, and product differentiationProduct DifferentiationProduct differentiation refers to making a product look attractive and different from other products in the same class. D) 2,750. B) total revenue. E) produce the efficient quantity. *Prohibit the entry of new rivals. The other two share the rest (20%). C) "If only Wally and I could agree on a higher price, we could make more profits." 4. d) have interdependent pricing. Segn Ricardo no es posible que exista equidad en el mercado debido a que: A. Strategic independence. e) price changes are typically expensive, b) product development and advertising are relatively difficult to copy, Oligopolies are not a desirable market structure because they achieve ______. *Large capital investment 0. a) kinked and steep d) elastic, An oligopoly firm's demand curve will be kinked if ______. In second-degree price discrimination the monopolist offers a menu of quantity-based pricing options designed to induce customers to self-select based on how highly they value the product. A(n) _______ (Enter one word) is a market dominated by a few large producers of a homogeneous or differentiated product. Welcome to EconTips, your number one source for all things about economics. Types of Market Structure Economists group industries into four distinct market structures: 1. Which of the following represents the problem with the four-firm concentration ratio? e) straight. d) cheat, Which of the following represent shortcomings of the four-firm concentration ratio? E) marginal cost. b) kinked demand To further understand market modules follow the below topics. Given the emergence and expected evolution of AI-driven services in various niches, it is likely that there will be a highly concentrated market devoted explicitly to the AI needs of consumers. B) a contestable market. In other words, when there are two or more than two, but not many, producers or sellers of a product, oligopoly is said to exist. 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. Though, it is rare to find pure oligopoly situation, yet, cement, steel, aluminum and chemicals producing industries approach pure oligopoly. at least $10 million. *Increase profits The concentration ratio measures the market share of the. 11) Because an oligopoly has a small number of firms, A) each firm can act like a monopoly. 1) The market structure in which natural or legal barriers prevent the entry of new firms and a small number of firms compete is, 2) Suppose that industry A consists of four firms who collectively control 96 percent of total sales in the market. bc it's similar to monopoly but has the difference of having more firms lol. 6) Wal-Mart follows the kinked demand curve model of oligopoly. B) the courts. homogeneous or differentiated products i. A) only Bob would like to change his decision. B) both prisoners deny. D) equilibrium quantity will be sensitive to small cost changes but price will not. Oligopoly. *Reduce uncertainty Oligopolists do not stress competing with each other on the pricing front. C) in a repeated game but not a single-play game. Interdependence land back or when DTRs debt to equity position improves, what should she do? B) there are two producers of two goods competing in an oligopoly market Barriers to entry. b) its rivals match price increases and price decreases Interdependence: The foremost characteristic of oligopoly is interdependence of the various firms in the decision making. 11) Because an oligopoly has a small number of firms. a) major firms in an industry ranked by employment D) not an oligopoly. D. Th; Which of the following is a characteristic of an oligopoly market structure? *The firm is failing to produce at the profit-maximizing output. Consequently, the sales of the other firm will be definitely reduced by the same percentage. d) Cost leadership model D) specify how average cost is determined. 8) A weakness of the kinked demand curve theory of oligopoly is that it does not (Enter one word for each blank. *price elasticity of demand 9) Which isnota characteristic of oligopoly? C) lower the price of their products. characterized by the presence of a few large firms who produces B) the firms may legally form a cartel. C) average total cost. I really hope you learned this article. 21) It is difficult to maintain a cartel for a long period of time. c) The outcomes for all firms are positive. The payoffs in the table are the economic profit made by Bud and Miller. D) a prisoner has no incentive to confess to his crime, and stands a greater chance of not going to prison. Why does a rise in the current asset to total asset ratio result in a decline in net working capital's estimate of both profits and risk? Nokia, however, offers Android phones with the same features and almost similar prices. *The firm's profits will be lower. E) potential entrants taking all the business away from existing firms. 1) A cartel is a group of firms which agree to Based on the elasticity of demand and its response to the price change, the demand curveDemand CurveDemand Curve is a graphical representation of the relationship between the prices of goods and demand quantity and is usually inversely proportionate. A) is; all other firms act as if they are perfectly competitive B) is not; other firms can enter, which increases supply, decreases the price, and drives economic profit down to zero B) assumes marginal cost is constant. d) The percentage of industries that are dominated by a group of four or fewer firms, c) The percentage of total industry sales accounted for by the four largest firms, What term means "cooperation with rivals?" ECO-FINALS_LESSON-1 - Read online for free. c) The possibility of price wars increases, but profits are maximized. b) They try to avoid losses by raising prices in conjunction with rival firms. 4) Which one of the following industries is the best example of an oligopoly? Businesses or firms operating across a broad range of industries like the airline industry, electrical industry, automobile industry, wireless telecommunication services, petroleum industry, smartphone industry, steel industry, supermarkets, the tobacco industry, and railroads industry are commonly considered oligopolistic in different jurisdictions. 3) Which one the following industries is the best example of an oligopoly? e) is always upward sloping, a) depends on the actions of rivals to price changes, The four-firm concentration ratio understates the competition in the aluminum industry because aluminum competes with copper in many applications. *It enhances competition and reduces monopoly power. Barriers to entry into an oligopoly most resemble those of a ______. As a result, monopolists produce less, at a higher average cost, and charge a higher price than would a combination of firms in a perfectly competitive industry. The competing firms are few in number but each one is large enough so as to be able to control the total industry output and a moderate. If so, then the firm's demand curve will be ______. b) competitively 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. When firm X increases its price. They do it strategically so they do not lose their customers in what could be a price war. A single 5. from a social viewpoint, monopolistic competition is better than perfect competition None of these Question 8 (1 point) A firm using advertising differs from a firm not using advertising in that the firm using advertising. xxx\underline{\phantom{\text{xxx}}}xxx. The main Characteristics of oligopoly are as follows: A few sellers There will be a few sellers in an oligopoly. D. El desempleo voluntario hace que no se produzca el crecimiento econmico. Principles of Microeconomics Instructor: Sandhya Patlolla Assignment 7 1) In two firm oligopoly, if one firm increases its price, then the other firm can: A. B) marginal cost curve is discontinuous. E 12) Because an oligopoly has a small number of firms A) each firm can act like a monopoly. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Copyright 2023 . What does a demand curve look like for an oligopolistic firm? 16) The firms Trick and Gear form a cartel to collude to maximize profit. c) game theory d) Mutual interdependence. a) its rivals collude oligopoly, monopoly, monopolistic competition, pure competition pure competition, monopolistic competition, oligopoly, monopoly. 18) A market with a single firm but no barriers to entry is known as Have you a question about something that I covered. If one firm is large enough to account, which is that 80% of sales in the industry. *The game would temporarily move to either cell B or cell C. *Patents, *Preemptive pricing This is different compared to the perfectly competitive market and the monopolistic market that consist of a large number of sellers whereas there is only one sole seller in the monopoly market. Oligopolyis a market structure Impure because have both lack of Since there are few dominating firms which are having full knowledge about the market, the decisions on the price and output of a firm depend on the reactions of other firms. b) legal *To obtain lower input prices If this occurs, then the firm's demand curve will look ______. But the other firms act considering the interdependence. b) Interindustry competition Oligopoly. If the products of the firms are differentiated the degree of interdependence is then weakened. When the number of firms in an oligopolistic industry increases from 3 to 10, it is ______ to collude. c) give the appearance of increased competition B) rivalry among a large number of rivals leads to lower overall profit. d) can set its price and output to maximize profits. a) pricing theory Consequently, each firm must condition its behavior on the behavior of the other firms. C) the HHI for the industry is small. Companies often merge to ______ monopoly power. Instead, they collaborate on various fronts, such as economies of scaleEconomies Of ScaleEconomies of scale are the cost advantage a business achieves due to large-scale production and higher efficiency. 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 _____. D) increase the amount they produce. Which is the simple form of oligopoly market? In doing so, they reduce production and increase prices, a phenomenon called collusion. 5.3.5 Apply Concepts of Oligopoly and Oligopoly Models .pdf. A) costs, prices, profit, and strategies. Sweezy Oligopoly - based on a very specific assumption regarding how other firms will respond to price increases and price cuts. OA. a) over collusion C. Some market power. C) strategies c) have no rivals *interindustry competition Many firms b. What are examples of monopoly and oligopoly? c) price leadership; cartel The characteristics of an oligopoly market or oligopolistic strategy are mentioned below: Interdependence . Product differentiation refers to making a product look attractive and different from other products in the same class. The presence of a small number of companies in an oligopoly market structure makes it highly concentrated. D) a firm in perfect competition. d) Oligopolistic collusion, Compared to monopolies, oligopolies ______. This way, Samsung and Nokia ensure non-price competition by enhancing core capabilities to build a loyal customer base. A) This game has no dominant strategies. D) the four-firm concentration ratio for the industry is small. Answers: 1 Show answers Another question on Social Studies. Typically, this means that at least 40% of the market is controlled by a few firms. c) harder (Figure) summarizes the characteristics of each of these market structures. The first firm to move in a sequential game has an advantage by establishing a ____ _____ that is favorable to them. a) are always more efficient Marilyn has been involved in negotiations between DTR and prospective lenders as DTR D) firms in perfect competition. Market players in an oligopolistic market focus on non-price competition, ensure their brands are uniquely identifiable and apply hidden advertising tactics. The incomes of each optometrist, in thousands of dollars, are given in the payoff matrix above. e) Its marginal cost curve is made up of two segments, d) Its marginal revenue curve would consist of two segments. In an oligopoly, a few dominant brands offer most of the products and services and make significant decisions on behalf of the rest. In this market, there are a few firms which sell homogeneous or differentiated products. a) The possibility of price wars diminishes and profits are maximized. c) price leadership Determinateness of demand curve is a part of law of demand and does not fall in oligopoly. A. firms have no control over their price B. firms may sell a differentiated product C. firms have market power D. firms may sell a standardized product E. the market contains a few large products A, C In an oligopolistic market, the two types of retaliation include. Artificial intelligence (AI) services are on the rise, with every industry readying to integrate the technology sooner or later. Keep its price constant and thus decrease its market share C. Increase its price and thus increase its market share D. Decrease its price and thus decrease its market share B) "I am producing more widgets than Wally and I agreed to in our talk last week." It is used as one of the strategies to increase the business firm's revenue and increase the market share.read more. In the credit card industry, for example, Visa and MasterCard have a duopoly.read more.