How do oligopolies harm society, and what legislations(in the UK) are in place to protect the process of competition? Also, explain why oligopolies cannot maintain monopoly profits and provide an example drawing on prisoner’s dilemma within a specific industry of your choice.
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How do oligopolies harm society, and what legislations(in the UK) are in place to protect the process of competition? Also, explain why oligopolies cannot maintain
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- Give two examples of a prisoner's dilemma that involves more than two playersThe U.K. Office of Fair Trading has recently unveiled a plan that will offer immunity from prosecution to firms who blow the whistle on their co-cartel conspirators. In the United States, this tactic has proven extremely successful: Since its introduction in 1993, the total amount of fines for anticompetitive behavior has increased twentyfold. Show how the tactic initiated by the U.S. Department of Justice, soon to be followed by the U.K. Office of Fair Trading, changes the rules of the game played between firms in a secret cartel.Antitrust laws Cooperation among oligopolies runs counter to the public interest because it leads to underproduction and high prices. In an effort to bring resource allocation closer to the social optimum, public officials attempt to force oligopolies to compete instead of cooperating. Consider the following scenario: Suppose that the presidents of two auto manufacturing companies exchange text messages in which they discuss jointly raising prices on their new lines of hybrid SUVs. This illegal communication would violate which of the following laws? The Clayton Act of 1914 The Celler–Kefauver Act of 1950 The Sherman Antitrust Act of 1890 The Robinson–Patman Act of 1936
- What are examples of a monopolistically competitive firm, oligopoly, and monopoly in your local area? In your example, please relate to the market characteristics of each of the market structures?Q30 The Competition Bureau in Canada wants to increase competition and reduce monopoly power. Thus it it worries about industry concentration in Canada. If Canada's cannabis industry is a cartel, other things constant, a firm in the cannabis cartel will most likely cheat on a price-fixing agreement by: Multiple Choice increasing the price of cannabis and restricting its its output. organizing promotions of cannabis. secretly lowering price of cannabis and increasing sales of cannabis to a few customers. applying the prisoner's dilemma principle. secretly increasing sales of cannabis to a large number of small customers.Suppose, Pfizer Company is the only company allowed by the Sultanate government to sell COVID vaccine in Oman. According to you, what type of market Pfizer Company is having in Oman? a. Monopoly market b. Monopolistic market c. Competitive market d. Oligopoly market
- What is the best example of an oligopolistic market? Question 4 options: Government monopoly on postal services. Foreign exchange market. Restaurant business with thousands of competing companies. Fourteen biggest car manufacturers.QUESTION 27 The way out of a prisoner’s dilemma is to find: Somebody to step in for you. A way to penalize those who do not cooperate. A way to penalize those who do cooperate. A way to reward those who do not cooperate. A needle in a haystack.Would it be answer 1? Imagine a duopoly in which two firms, A and B, produce the monopoly profit-maximizing output and equally share the economic profit. If firm A increases output, 1)both firms' profits increase. 2)firm A's profits increase and firm B's profits decrease. 3)firm B's profits increase and firm A's profits decrease. 4)both firms' profits decrease. 5)firm A's profits increase and firm B's profits do not change.
- Sometimes oligopolies in the same industry are very different in size. Suppose we have a duopoly where one firm (Firm A) is large and the other firm (Firm B) is small, as the prisoner’s dilemma box in Table 10.4 shows. Firm B colludes with Firm A Firm B cheats by selling more output Firm A colludes with Firm B A gets $1,000, B gets $100 A gets $800, B gets $200 Firm A cheats by selling more output A gets $1,050, B gets $50 A gets $500, B gets $20 Table10.4 Assuming that both firms know the payoffs, what is the likely outcome in this case?Question 39 Modeling a cartel as a prisoners’ dilemma game shows that ____________________ may be rational even if ____________________. Group of answer choices non-cooperation; cooperation benefits everyone cooperation; cooperation benefits everyone cooperation; cooperation damages everyone non-cooperation; cooperation damages everyoneExplain Prisoner’s Dilemma. Show how advertising by two competing firms may lead to inefficient distribution of resources
