One thing oligopolists must do in order to determine their optimal strategy is Question 8Answer a. ignore the reaction of their rivals to their strategy. b. anticipate the reaction of their rivals to their strategy. c. produce a unique product which has no close substitutes. d. ignore the reaction of their customers to their strategy.

One thing oligopolists must do in order to determine their optimal strategy is Question 8Answer a. ignore the reaction of their rivals to their strategy. b. anticipate the reaction of their rivals to their strategy. c. produce a unique product which has no close substitutes. d. ignore the reaction of their customers to their strategy.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter10: Monopolistic Competition And Oligopoly

Section: Chapter Questions

Problem 9RQ: If the firms in a monopolistically competitive market are earning economic profits or losses in the...

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Similar questions

If the firms in a monopolistically competitive market are earning economic profits or losses in the short run, would you expect them to continue doing so in the long run? Why?
Do cost reductions in oligopolies usually lead to price reductions? a. always b. never c. sometimes, if the government permits it d. sometimes, but only if the oligopolists choose to use lower prices to expand the market and/or their market share e. sometimes, if arbitrage can be eliminated
D2) Explain this concept and give one practical example(oligopoly)
Suppose that the market for e-readers is an oligopoly controlled by Amazon.com , Barnes and Noble,Sony, and Apple. Barnes and Noble is consideringincreasing its output. How would this affect themarket price? How would it affect the profits ofeach company?
Only typed answer why is the pharmaceutical sector is an example of oligopoly.
How do perfectly competitive firms, monopolists, monopolistically competitive firms, and cartels choose the profit -maximizing quantity? A) The quantity at which average total cost is minimizedB) The quantity at which total revenue and total cost are equalC) The quantity at which total revenue is maximizedD) The quantity at which marginal revenue and marginal cost are equal
In general, oligopolists compete Question 4Answer a. on many dimensions except for price. b. None of these. There is no competition in oligopolistic industries. c. on price and quantity. d. on price alone.
Critical Thinking In many oligopolistic industries, firmsfollow a price leadership strategy, in which an accepted industry leader sets, raises, or lowers prices and theother firms follow. In what ways is this policy good andbad for the industry? In what ways is this good or badfor consumers? Whal is the difference between priceleadership and price fixing? Should governments al- low industries 10 use price leadership strategies? If not,how can they prevent it?
(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.
Q. Critically evaluate why the demand curve faced by an oligopolist firm is kinked shaped with graph and schedule?
2. The market for dark chocolate us characterized by Cournot duopolists - Honeydukes and Wonka industries. The market demand for dark chocolate is:P = 8 - 0.005Qdwhere P is the price per bar in dollars and Qd is dark chocolate's daily quantity demanded in bars (use qh to represent the quantity of dark chocolate sold by Honeydukes and qw to represent the quantity of dark chocolate sold by Wonka Industries). Honeydukes has a constant marginal cost of $2.50 per bar, while Wonka Industries has a constant marginal cost of $3.00 per bar. The firms move simultaneously in choosing their profit-maximizing quantity of output.a. Given the firms move simultaneously, what is the equation for Honeydukes' reaction function with qh expressed as a function of qw?b. Given the firms move simultaneously, what is the equation for Wonka's reaction function with qw expressed as a function of qh?c. What quantity of dark chocolate will each firm produce in equilibrium and what price will be established for a…
a) Discuss three parameters for firms operating in an oligopoly market. b) Even when allowed to collude, firms in an oligopoly will choose to cheat on their agreements with therest of the cartel. Why?