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2. Describe the fundamental difference between pure competition and non-collusive oligopoly.
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- Consider the curve in the figure below, which shows the market demand. marginal cost, and marginal revenue curve for firms in an oligopolistic industry. In this example, we assume firms have zero fixed costs. Suppose the firms collude to form a cartel. What price will the cartel charge? What quantity will the cartel supply? How much profit will the cartel earn? Suppose now that the cane] breaks up and the oligopolistic firms compete as vigorously as possible by cutting the price and increasing sales. What will be the industry quantity and price? What will be the collective profits of all firms in the industry? Compare the equilibrium price, quantity, and profit for the cartel and cutthroat competition outcomes.3. Explain why Oligopolistic market decisions are more difficult compare to other market structures? Use a local example to support your explanation.2. Ryan and Zheka produce the same homogeneous product and each has constant marginal costs of \$7. Market demand is linear, with vertical intercept 60 and horizontal intercept 30. Ryan and Zheka are Bertrand competitors, so pricing is important to them. What price will each charge in the unique Nash equilibrium of this Bertrand duopoly? a) Both charge a price of \$6. b) Both charge a price of \$7. c) Both charge a price of \$20. d) One charges \$7, the other stays out of the market.
- 4. Why is mutual interdependence important under oligopoly, but not so important under perfect competition, monopoly, or monopolistic competition.18. An automobile company that charges five thousand dollars more for its vehicles than a competitor’s vehicle will find it impossible to survive in an oligopoly market. False TrueIn your experience and observation of the general market, can you identify two companies locally or nationally you can associate with any of these market structures (Perfect competition market structure, monopoly market structure, monopolistic-competition market structure, oligopoly market structure)? not copy paste
- The sum total set of interrelationships that establish the manner in which competitors behave in an industry could be referred to as competitive dynamics.Required: 1. Briefly explain what competitive rivalry is? 2. Explain what competitive behaviour is and the three factors that drive competitive behaviour 3. With the aid of a diagram explain the model of competitive rivalry and how a strategist can use that understanding to develop strategies that facilitate the attainment of higher financial performanceCOURNOT SOLUTION THEORY AND ITS APPLICATION IN OLIGOPOLY MARKETS. Please write this in 1500 word and provide the referenceQuestion 6 (a) Why is Perfect Competition considered to display high level of economic efficiency? (b) How does monopoly result in a dead-weight loss? Illustrate with diagram. (a) How is oligopoly different from monopolistic competition? (b) Illustrate and explain how the oligopolistic firms determines their collective profit by maximizing price and output levels when they collude and act like a cartel (monopoly). Question 7 (a) What are the main causes of market failure? Give one example and illustrate using a diagram. (b) Explain the difference between private costs and social costs. (c) Government of Country X is considering implementing a tax on fizzy drinks. Using a demand and supply diagram, illustrate what effect the tax will have on the market of fizzy drinks. (d) For what purposes does government use taxes-both at micro and macroeconomic level?
- (a) There are two companies in the world that produce large passenger aircraft, Boeing, and Airbus. How would you characterize the market for large passenger aircraft, monopoly, perfectly competitive, monopolistically competitive or Oligopoly? Please explain. Large passenger aircraft are defined as aircraft than can carry more than 150 passengers. (b) The market for telephone services has become more competitive over time with the advancement of technology in the industry. Technology in the aircraft manufacturing industry has also advanced significantly. Why hasn’t this improvement in technology led to an increase in competition (Boeing and Airbus have been the only manufacturers in this industry for many years)? Please explain.1) Discuss the main features of oligopoly market. please provide detailed answerQuestion: Using the Cournot model of a duopoly (oligopoly), compare and illustrate in detail the level of industry output for a purely competitive industry, a duopoly, and a monopoly.
