You are free to use this image on your website, templates, etc., Please provide us with an attribution link. 0. In the credit card industry, for example, Visa and MasterCard have a duopoly.read more. An oligopoly is a market state where there is a limited amount of competition available for consumers to consider. e) is always upward sloping, a) depends on the actions of rivals to price changes, The four-firm concentration ratio understates the competition in the aluminum industry because aluminum competes with copper in many applications. In a(n) _____ game one firm moves first, committing to a strategy and then the rival firm responds. It also means that each firm must be aware of the reaction of others to their actions. B) of barriers to entry. An oligopolistic firm's marginal revenue curve is made up of two segments if ______. The distinctive feature of an oligopoly is interdependence. The urban land lease policy is not very friendly to rural households land in general and the poor land holders in particular. Consequently, the output and pricing policies of a particular company can affect market conditions. The core competencies in business refer to its resources and unique fundamental capabilities that distinguish it from market competitors. Which is the simple form of oligopoly market? What is oligopoly and its characteristics? Which of the following is not a characteristic of an oligopoly? Examples of oligopolies Car industry - economies of scale have caused mergers so big multinationals dominate the market. a) prices; uncertainty; increase C) potential entrants entering and making zero economic profit. It is an essential component of marketing strategy leading to brand recognition and business growth. They are C) is; the dominant firm is making an economic profit Each firm faces a downward-sloping demand curve. However, firm B will follow the leaders price and equilibrium quantity in order to avoid the uncertainty that can be arisen. c. Competing firms can enter the industry easily. C) The sales of one firm will not have a significant effect on other firms. Keep its price constant and thus decrease its market share C. Increase its price and thus increase its market share D. Decrease its price and thus decrease its market share A) average total cost curve is discontinuous. A) Each firm has an incentive to collude. b) Interindustry competition d) strategic theory. e) may be no more efficient due to a lack of firm interdependence, c) may be less desirable because they are not regulated by government to protect consumers. C) changes in the output of any member firms will have no impact on the market price. c) Its marginal cost curve is made up of two segments d) its rivals match both a price cut and price increase, b) its rivals match a price cut but ignore a price increase, When members of an oligopoly meet to set prices to maximize profits it demonstrates the ______ and/or the ______ model. d) ow to receive a payout of $12 d) The firms in the industry are interdependent. B) a market where two firms compete for profit and market share. While it is true that strategic behavior and mutual interdependence characterize oligopolies, this is not the reason why they are price makers. The other two share the rest (20%). Answers: 1 Show answers Another question on Social Studies. a) necessary d) both productive efficiency and allocative efficiency, b) neither productive efficiency nor allocative efficiency. Such companies have complete control of the market, earning high profits and gains in a specific sector or service. It is calculated by dividing the change in the costs by the change in quantity.read more is the cost of productionCost Of ProductionProduction Cost is the total capital amount that a Company spends in producing finished goods or offering specific services. List the three steps followed under the gross profit method of estimating inventory. d) does not influence. c) They move leftward and upward to a higher point on the average-total-cost curve. A) there are only two producers of a particular good competing in the same market *Cause price wars during business recessions b) product development and advertising are relatively difficult to copy 13) A dominant firm oligopoly might be one for which the Herfindahl-Hirschman Index is C) there are numerous producers of two goods competing in a competitive market The distinctive feature of an oligopoly is interdependence. c) regulated monopoly The payoff matrix of economic profits above displays the possible outcomes for Bob and Jane who are involved in game of whether or not to advertise. *manipulating consumer preferences. a) The possibility of price wars diminishes and profits are maximized. *Reduce uncertainty d) can set its price and output to maximize profits. Oligopoly is a market with a few firms and in which a market is highly concentrated. b) OPEC b) are always less efficient However, firm B follows the leaders price and equilibrium quantity in order to avoid the uncertainty that can be arisen. Oligopoly is a market structure characterized by a few firms. 3) Which one the following industries is the best example of an oligopoly? Oligopoly is one of the four market structures and identified by a small number of big businesses operating in a particular industry. B) each member will face the temptation to cheat on the cartel price to increase its sales and profit. *Increase profits from a social viewpoint, monopolistic competition is better than perfect competition None of these Question 8 (1 point) A firm using advertising differs from a firm not using advertising in that the firm using advertising. The concentration ratio is a tool that measures the market share leading companies have in an industry. c) They move leftward and upward to a higher point on the average-total-cost curve. The amount of time (in seconds) needed to complete a critical task on an assembly line was measured for a sample of 50 assemblies. Suppose that one of the two firms decided to reduce the price of its product by some amount resulting 20 % increase in its sales. In the scenario above, the market is. (Enter one word for each blank. d) The same as a monopoly, By controlling ______ through collusion, oligopolists may be able to reduce ______, ______ profits and block the entry of new rivals. E) is; to comply when the other firm cheats and to cheat when the other firm complies. In an oligopoly, a few dominant brands offer most of the products and services and make significant decisions on behalf of the rest. A) a Competition Tribunal. B) it prevents or substantially lessens competition Why does a rise in the current asset to total asset ratio result in a decline in net working capital's estimate of both profits and risk? C) "If only Wally and I could agree on a higher price, we could make more profits." O B. Marilyn is also aware that DTR issued$10 million of common stock to a long-time friend of the b) The Herfindahl model read more, market demand, and product differentiationProduct DifferentiationProduct differentiation refers to making a product look attractive and different from other products in the same class. 4. D)There is more than one firm in the industry. e) It could be downward sloping or kinked. Why do the elements of structure, such as work specialization, formalization, span of control, chain of command, and centralization, have a tendency to change together? a market structure characterized by a small number of interdependent sellers is called a oligopoly Which of the following is NOT a common characteristic of oligopoly? E) none of the above is done. Impure because have both lack of E) A and C. 8) A merger is unlikely to be approved if ________. Impure oligopoly - have a differentiated product. d) through advertising, Firms have a desire to cheat on a collusive agreement because ______. A. Such companies have complete control of the market, earning high profits and gains in a specific sector or service. As a result, the implementation of the policy has been marginalizing the rural settled peasant . A) the government will impose price controls. Libertyville has two optometrists, Dr. Smith and Dr. Jones. There are just several sellers who control all or most of the sales in the industry. It is used as one of the strategies to increase the business firm's revenue and increase the market share.read more. What is the Nash equilibrium? You may also have a look at the following articles , Your email address will not be published. Oligopoly characteristics include high barriers to new entry, price-setting ability, the interdependence of firms, maximized revenues, product differentiation, and non-price competition. C) average variable cost curve is discontinuous. What are the four characteristics of market structure? La renta de la tierra de primera calidad ser siempre superior a la renta de la tierra de segunda categora. A) Each firm faces a downward-sloping demand curve. A) price. d) Oligopolistic collusion, Compared to monopolies, oligopolies ______. 1) A cartel is a group of firms which agree to A) behave competitively. as the price increases, demand decreases keeping all other things equal. An oligopoly exists when a market is dominated by a small number of suppliers or firms. Have you a question about something that I covered. c) costs; uncertainty; increase B) potential entrants entering and incurring economic loss. d) their profits and sales will rise. C) "Construction prices in this town seem to be always set by Big Jim's Dandy Construction Company." . $6. B) the firms may legally form a cartel. D) There is more than one firm in the industry. It is assumed that all of the sellers sellidentical or homogenous products.read more, monopoly, and monopolistic competition. An oligopoly is a market structure that involves few producers and suppliers (www.oecd.org). what are the 5 characteristics of an oligopoly? Products traded or traded homogeneously become the second characteristic of oligopoly. Mutual interdependence among the firms in decision making is the essential feature of the oligopolistic market. A price war is a competition among the competitors of the business in lowering the price of their products to gain an advantage over their competitors in price and capture a greater market share. a) Affect profits and influence the profits of rival firms A type of implicit understanding used by oligopolists to coordinate prices without engaging in outright collusion is known as ______. E)Firms are profit -maximizers. C) firms in monopolistic competition. C) Art denies and Bob confesses. 6) According to the kinked demand curve theory of oligopoly, at the quantity corresponding to the kink, the firm's If one firm is large enough to account, which is that 80% of sales in the industry. Established firms in the market may take strategic actions to prevent new entries. The characteristics of oligopoly include interdependence, product differentiation, high barriers to entry, uncertainty, price setters. Which statement is true about oligopolies? a) pricing theory Firm B adopts this price and sells XB(
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