ASG 4 Oligopoly Worksheet

1. Characteristics of oligopoly The oligopoly market structure is characterized by several defining qualities, one of which is either similar or identical products. Of the following list of characteristics, which others describe the oligopolistic market structure? Check all that apply. Market control by many small firms Neither mutual interdependence nor mutual dependence Mutual interdependence Difficult entry Market control by a few large firms

Only typed answer  1. Why do oligopolies exist?   A. A small number of firms have established barriers to entry using economies of scale, patents, and sheer size to prevent other firms from challenging them.   B. The oligopolistic firms are created, run, and supported by the government.   C. The members of an oligopolistic market are producing in the upward sloping range of their long run average cost curves.

Diagram 1: [Insert a diagram illustrating a typical short-run profit maximization strategy in an oligopolistic market structure, showing a kinked demand curve, marginal cost curve, and marginal revenue curve.] In the diagram, the kinked demand curve represents the demand faced by an oligopolistic firm. The kink in the demand curve implies that competitors are likely to match any price decrease but not necessarily match any price increase. This creates a situation where the firm's marginal revenue (MR) is discontinuous, resulting in a gap at the kink. The firm maximizes its short-run profits at point A, where marginal cost (MC) equals marginal revenue (MR). The firm sets its price at P1 and produces output Q1, earning a supernormal profit represented by the shaded area. Diagram 2: [Insert a diagram illustrating a typical long-run profit maximization strategy in an oligopolistic market structure, showing a possible outcome of increased competition and reduced profit margins.] In the…

Which of the descriptions are characteristics of oligopoly and which are not? a. significant barriers to entry b. large number of firms producing differentiated products c. free entry and exit d. large number of buyers and sellers e. firms must consider competitors' reactions when making decisions

1. Characteristics of oligopoly An oligopolistic market structure is distinguished by several characteristics, one of which is difficult entry. Which of the following are other characteristics of this market structure? Check all that apply. Market control by many small firms   Market control by a few large firms   Neither mutual interdependence nor mutual dependence   Either similar or identical products   Mutual interdependence

Why do oligopolies exist?   Group of answer choices   1-A small number of firms have established barriers to entry using economies of scale, patents, and sheer size to prevent other firms from challenging them.   2-The members of an oligopolistic market have signed agreements that divide the market such that no other firms will be able to achieve their level of profits.   3-The oligopolistic firms are created, run, and supported by the government.   4-The members of an oligopolistic market are producing in the upward sloping range of their long run average cost curves.

1. Characteristics of oligopoly An oligopolistic market structure is distinguished by several characteristics, one of which is either similar or identical products. Which of the following are other characteristics of this market structure? Check all that apply. Market control by many small firms   Market control by a few large firms   Mutual dependence   Mutual interdependence   Difficult entry

conomics 1.) Are Concentration Ratios Low, Moderate or High in a Monopolistic Competitive Market? Explain why its low, moderate or high. [Chapter 11 Oligopoly] 2.) Explain how Monopolistically Competitive Firms develop A.) Market Power and B.)Firm's Control over Price. Also, describe and explain The Shape of the Monopolistic Competitive Firm's Demand Curve. [Chapter 11 Oligopoly] 3.) Describe and explain how Oligopoly fırms behave when it comes to Rivals, Price Competition , Non-price competition (advertising , product differentiation and Brand Loyalty) and market share strategies. [Chapter 11 Oligopoly]

MICROECONOMICS

QUESTION ONE "Oligopoly occurs when just a few firms share a large proportion of the industry." [30] In terms of the above statement provide an evaluation of firms that operate as an oligopoly industry.

1. Which three of the following characteristics apply to oligopoly? Select one: a. A few large firms account for a high percentage of industry output b. Many small firms account for a high percentage of industry output c. Each firm faces a horizontal demand curve. d. The industry is often characterized by extensive non-price competition

18. Horizontal Integration is most likely to lead to an industry that is: monopolistically competitive an oligopoly any of the other answers O perfectly competitive

Question 1 D Why does interdependence of firms play a major role in oligopoly but not in perfect competition or monopolistic competition?

Question 26 According to the kinked demand curve theory of oligopoly, each firm thinks its demand curve at prices below the existing price is a. more elastic than at prices above the existing price since price increases will be matched. b. less elastic than at prices above the existing price since price increases will be matched. c. more elastic than at prices above the existing price since price increases will not be matched. d. less elastic than at prices above the existing price since price increases will not be matched.

18. Refer to Figure 18-1. If the shop charges $150 per repair, then what is the value of the marginal product of the second mechanic? 19. Refer to Figure 18-1. What is the marginal product of the third mechanic? 20. Why are the actions of firms interdependent in an oligopoly market but not in a monopolistically competitive market?

Q1. Which is which?   Identify the oligopoly model based on the description. Two Firms, high barriers to Entry, Firms sell identical goods, Firms simultaneously choose output______(a. Cournot Duopoly  b. Monopolistic Duopoly  c. Bertrand Duopoly  d. Stackelberg Duopoly) Two Firms, high barriers to entry, Firms sell identical goods, Firms simultaneously choose prices______(a. Stackelberg Duopoly   b. Bertrand Duopoly  c. Hotelling Duopoly  d. Cournot Duopoly) Few Firms, low barriers to entry, firms sell substitutes but differentiated goods______(a. Monopolistic Competition  b. Bertrand Oligopoly  c. Bertrand Competition with Differentiated Goods  d. Cournot Oligopoly) Two firms, high barriers to entry, firms sequentially choose output______(a. Stackelberg Duopoly  b. Bertrand Duopoly  c. Cournot Duopoly  d. Monopolistic Competition)

Question 1

Explain whether or not each industry fits the definition of an oligopoly. What are the dominant firms ineach industry?(a) Video game consoles(b) Video streaming services(c) Internet search engines(d) Beer(e) Corn