Complete the table below to describe the characteristics of an oligopolistic market. Select one option from the drop down list provided for each characteristic. Number of suppliers Product differentiation Potentially high Innovative behaviour Potentially strong Entry barriers Demand curve of a firm Market power Potentially high

Complete the table below to describe the characteristics of an oligopolistic market. Select one option from the drop down list provided for each characteristic. Number of suppliers Product differentiation Potentially high Innovative behaviour Potentially strong Entry barriers Demand curve of a firm Market power Potentially high

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter15: Oligopoly And Strategic Behavior

Section: Chapter Questions

Problem 2P

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Indicate if the following characteristics exist in oligopolistic market by putting a check (√) on the blank before those that are and a cross (x) for those that are not. _______ 1. Easy entry into the market. _______ 2. Uniform pricing of product _______ 3. Interdependence of action among sellers _______ 4. Products sold may be homogeneous or differentiated. _______ 5. Prevalent nonprice competition _______ 6. Sellers enjoy a degree of market control. _______ 7. The seller’s marginal revenue is lower than price. _______ 8. Profit is maximized where MR = MC. _______ 9. A dec+-rease in the price of one seller is usually matched by price decreases of his rivals. _______ 10. The marginal revenue curve is truncated.
How do i draw a kinked demandcurve to represent Tesco's success inan oligopolistic market
Toyota Motor Corporation operates in a oligopolistic market. How should firms reacte to a recession when selling products in a oligopolistic market? What strategies and/or implications for the firm and/or the market can be identified?
A firm in an oligopolistic industry has the following demand and total cost equations: P = 600 - 20Q TC = 700 + 160Q + 15Q*2 Calculate: a. quantity at which profit is maximized b. maximum profit c. quantity at which revenue is maximized d. maximum revenue e. maximum quantity at which profit will be at least $580 f. maximum revenue at which profit will be at least $580
How players in oligopolistic market compete with each other ? a) What happens to the supply and price in an oligopolistic market with Cournot competition when players cannot correctly predict each other’s supply decisions. Use appropriate graph to support your answer. b) Explain and discuss simultaneous price competition with differentiated products. Use appropriate graphs to support your answer.
Explain the general meaning of the profit payoff matrix below for oligopolists X and Y. All profit figures are in thousands. a. Use the payoff matrix to explain the mutual interdependence that characterizes oligopolistic industries. b. Assuming no collusion between X and Y, what is the likely pricing outcome? c. In view of your answer to 3b, explain why price collusion is mutually profitable. Why might there be a temptation to cheat on the collusive agreement?
Kinked demand curve model is useful in explaining price quantity stability that prevails in oligopolistic market agree? Or disagree use ilustrations to explain
Which of the following best represents the pricing behavior of firms in an oligopolistic market? A) Stay*Put Clothespins takes the market price of clothespins as given and produces the amount of clothespins where marginal revenue equals marginal cost. B) Unykdrugs, Inc. produces where its marginal revenue is equal to its marginal cost and prices on its downward-sloping demand curve such that the market for its product clears, knowing it will not face competition due to patents it holds on its products. C) Teen Angle Hardware looks for a niche to sell its hardware products to teens but finds it difficult to earn anything more than normal profit due to other hardware stores also looking for niches. D) Looking Over Your Shoulder Handbag Co. chooses the price it charges by estimating what its rivals are most likely to do and then taking their responses into consideration.
Q61 Tha use of cannabis was legalized in Canada in 2017. Assume that the Canadian cannabis sector is an oligopoly producing differentiated products, for example marijuana cigarettes with different levels of THC, the active ingredient. If the four-firm concentration ratio in an oligopolistic ten-firm industry is 40 percent, and each firm has an equal percentage of sales, the Herfindahl index is Multiple Choice 400. 2,000. 800. 4,000. 1,000.
Q2) Is it possible for a firm in an oligopolistic market to make a product differentiation. If yes, please explain by providing example. If not, please explain why it is not possible.
In an oligopolistic industry there are only a few firms. Is this statement correct? Explain.
With an estimated market share of 60%, Atlas is the dominant company and the price leader in an oligopolistic steel industry. The remaining market share is distributed equally between ten companies. Suppose that one of those ten companies, Norton, attempts to gain market share by undercutting the price set by Atlas.Calculate the “Four Firm Ratio” and Herfindahl-Hirschman Index “HHI” in the above described market and interpret your answer. What model can best resemble this market? Briefly explain this model. In your opinion, what will be the effect of Norton’s attempt described above on Atlas’s market share: will it increase, decrease, or not affected at all? Justify your answer