An industry has a four firm concentration ration of 90%. The largest firm has a market share of 30%. This industry is most likely an example of Options: a Perfect competition b Monopolistic competition c Oligopoly d Monopoly
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An industry has a four firm concentration ration of 90%. The largest firm has a market share of 30%. This industry is most likely an example of
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- An oligopoly is a market structure in which a. one firm has 100 percent of a market. b. there are many small firms. c. there are many firms with no control over price. d. there are few firms selling either a homogeneous or differentiated product.An industry has four firms, each with a market share of 25 percent. There is no foreign competition, entry into the industry is difficult, and no firm is on the verge of bankruptcy. If two of the firms in the industry seek to merge, this action would most likely be opposed by the government because the Herfindahl index for the industry is Multiple Choice 2,500 and the merger would increase the index by 1000. 5,000 and the merger would increase the index by 2000. 3,000 and the merger would increase the index by 2000. 2,500 and the merger would increase the index by 1250.An industry comprising 40 firms, none of which has more than 3 percent of the total market for a differentiated product, is an example of Multiple Choice monopolistic competition. oligopoly. pure monopoly. pure competition.
- Reference the following information about the market demand function for questions 1 to 15. These questions are on different types of market structures – monopoly, perfect competition, Cournot oligopoly market, and the Stackelberg oligopoly market. The market demand function is given the following equation: P = 2000 – Q where Q is the industry’s output level. Suppose initially this market is served by a single firm. Let the total cost function of this firm be given the function C(Q) = 200Q. The firm’s marginal cost of production (MC) is equal to the firm’s average cost (AC): MC = AC = 200. What is the difference in the industry output levels produced by the perfectly competitive industry (Qc) and the monopoly (Qm) industry? Group of answer choices Qc - Qm = 900 units Qc - Qm = 1800 units Qc - Qm = - 900 units Qc - Qm = 600 unitsThe inverse demand function in a particular homogenous product Cournot duopoly is P = 150 – 2(Q1+Q2). Each firm produces at constant marginal costs, equal to 20 and 28, respectively. [Notethat MRi(Qi) = a-bQj-2bQi] a) Determine each firm’s revenue function. b) Determine the reaction function for each firm. c) Calculate each firm’s equilibrium output. d) Calculate the equilibrium market price. e) Calculate the profit each firm earns in equilibrium.An oligopoly firm faces a kinked demand curve with the two segments given by: P = 230 – 0.5Q and P = 280 – 1.5Q. The firm currently has a constant marginal cost, MC of $150. State the assumptions of the kinked demand model in terms of price-matching and elasticity.
- Consider a Bertrand oligopoly consisting of four firms that produce an identical product at a marginal cost of $220. The inverse market demand for this product is P = 800 -4Q.a. Determine the equilibrium level of output in the market.b. Determine the equilibrium market price.$ c. Determine the profits of each firm.$Perfect Picture Cameras: Perfect Picture Cameras is a national camera company. It competes with 2-3 national camera companies. In order to gain an upper hand in the market, Perfect Picture Cameras has differentiated its camera by including an automatic focus and flash. Perfect Picture Cameras has the ability to raise its prices because of its unique features. However, it sometimes worries about the decisions and strategies of the other competitors. Choose one type of market structure: Perfect competition oligopoly monopolistic competition monopoly Type of Market Structure: Reason:Firm Market Share (%) A 40 B 30 C 20 D 5 E 5 Refer to the data. If Firm B merged with Firm E, the industry's four-firm concentration ratio would ____ and its Herfindahl index would ____.
- Consider a market with a duopolist structure. Each firm has similar marginal costs. Based on this information, we can conclude that: ProfitsDeceit > ProfitsCollusion > ProfitsDuopoly > ProfitsTrust in collusion ProfitsDeceit > ProfitsDuopoly > ProfitsCollusion > ProfitsTrust in collusion ProfitsDeceit > ProfitsTrust in collusion > ProfitsDuopoly > ProfitsCollusion ProfitsCollusion > ProfitsDuopoly > ProfitsDeceit > ProfitsTrust in collusionIn the packaged energy drink industry, there are only two companies that have the same relative strength in the market, namely “Pocary” and “Ion-1000”. It is known that the demand function in the market for this industry is as follows: Q = 1000 - 0.1P. Where Q in the market is supplied by these 2 companies. It is known that the total cost of the company is TC = 2q2 while for Ion-1000 is TC = 2.5q2 a. If these 2 companies collude, what is the price and quantity offered in the market at equilibrium, and calculate the profit of each company? b. If these 2 companies compete, look for the best respond function of each company, and what is the price and quantity offered in the market at equilibrium, and calculate the profit of each company? c. Make it in the game theory form of the two strategies "Collusion" and "Compete" and look for "Nash Equilibrium" in just one game? (Note, if one is a collusion strategy, then the quantity produced collusion strategy is the same as the calculation result…An oligopolistic market structure is distinguished by several characteristics, one of which is difficult entry. What are some other characteristics of this market structure? Check all that apply. Market control by many small firms a) Market control by a few large firms b) Mutual interdependence c) Mutual dependence d) Either similar or identical products
