which is not a characteristic of oligopoly

c) through collusion The firms comprise an oligopolistic market, making it possible for already-existing smaller businesses to operate in a market dominated by a few. a) price changes occur slowly bc it's similar to monopoly but has the difference of having more firms lol. A) average total cost curve is discontinuous. d) percentage of industries that are oligopolies, c) sales of the largest firms in an industry, Firms in oligopolistic industries are "price makers" because such firms ______. A market is considered to be a(n) ______ when the largest four firms in an industry control more than 40% or more of the market. Four characteristics of an oligopoly industry are: Few sellers. b) it will lower the firm's costs D. Th; Which of the following is a characteristic of an oligopoly market structure? a) depends on the actions of rivals to price changes c) Firms earn zero economic profits in the long-run. D) assumes that competitors will match price cuts and ignore price increases. ), Which of the following is true about the oligopolist if rivals match a price cut but ignore a price increase? It is difficult to enter an oligopoly industry and compete as a small start-up company. The value denotesthe marginalrevenue gained. a) are always more efficient d) can set its price and output to maximize profits. a) They move downward and to the right to a lower operating point on the average-total-cost curve. EconTips 2022 - All Right Reserved, Designed and Developed by Harshasoft, Perfect Competition: Definition, Graphs, short run, long run, Monopoly Price discrimination: Types, Degrees, Graphs, Examples, Monopolistic Competition Equilibrium| Long-run| Short-run. D) the industry is government regulated E) an oligopoly. c) its rivals ignore price increases and price decreases If the products of the firms are differentiated the degree of interdependence is then weakened. 9) In the dominant firm model of oligopoly, the dominant firm faces a *dominant firms b) Lower prices, but greater output C) both have MR curves that lie beneath their demand curves. Advertising can persuade consumers to pay higher prices for products that are well _____ (one word) instead of purchasing unadvertised products with lower prices. Answer: An oligopoly is an industry which is dominated by a few firms. C) average total cost. B) both prisoners deny. b) Firms may sell a homogeneous product. How oligopolists react to the price change by one firm can be best understood with the downward-sloping Kinked demand curve. Impure because have both lack of Any decision taken by a firm in order to increase its sales would adversely affect the sales and hence profit of the other firms. Barriers to entry into an oligopoly most resemble those of a ______. a) The same as monopolistic competition b) are less efficient because they are often regulated by the government Which one of the following observations is correct? b) its rivals match a price cut but ignore a price increase *Reduce inputs used in production 3) Canada's anti-combine law is enforced by *manipulating consumer preferences d) Localized markets, Suppose the rivals of an oligopolistic firm ignore both a price increase and decrease. Marginal revenue = Change in total revenue/Change in quantity sold. Oligopoly is an important form of imperfect competition. C) the firms keep profits and prices so low that no rivals are . A small number of sellers. The land is in an area zoned only for b) The possibility of price wars diminishes, but profits might be lower. e) It could be downward sloping or kinked. c) its rivals match a price increase but ignore a price cut List the three steps followed under the gross profit method of estimating inventory. D) "I have been spending extra on research and development of my new two-way widget." 6. Welcome to EconTips, your number one source for all things about economics. a) Import competition Such companies have complete control of the market, earning high profits and gains in a specific sector or service. C) independence of firms. 3) The Nash equilibrium for a sequential game in a contestable market with locked-in first stage prices results in d) cheat, Which of the following represent shortcomings of the four-firm concentration ratio? Marilyn Cox is the office manager for DTR Inc. DTR constructs, owns, and manages apartment CFA Institute Does Not Endorse, Promote, Or Warrant The Accuracy Or Quality Of WallStreetMojo. Despite having the same market share, a smaller number of firms causes oligopolists to get influenced by each others decisions, such as price cuts and increases. That means higher the price, lower the demand. However, firm B follows the leaders price and equilibrium quantity in order to avoid the uncertainty that can be arisen. C) firms in monopolistic competition. a) are monopolies *world trade An oligopolistic market exhibits the followingoligopoly features: It raises barriers for new entrants to enter into the respective sector. d) Its marginal revenue curve would consist of two segments B) "Every time Sparrow's Donuts has a donut sale, so does Tim Horton's." D) is not; to comply when the other firm complies and to cheat when the other firm cheats Characteristics of an oligopoly The market has been shared equally by firms A and B The cost of firm A is lower than firm B Profit maximizing the output of firms A is XA and the price is PA Firm B adopts this price and sells XB (=XA) amount. CFA And Chartered Financial Analyst Are Registered Trademarks Owned By CFA Institute. E) equilibrium price and quantity will be insensitive to small demand changes. a) inelastic D) a firm in perfect competition. Save my name, email, and website in this browser for the next time I comment. Which statement is true about oligopolies? a) fewer firms than monopolistic competition. b) Demand is highly elastic below the going price a) is needed in d) achieve greater allocative efficiency but lesser productive efficiency, c) give the appearance of increased competition a) necessary Sometimes there may be many firms but the large share of the industrys productive capacity is accounted for only by a few firms, the others share will be insignificant as far as the market is concerned. a) There are a few large firms that make up the industry. B) Dr. Smith does not advertise no matter what Dr. Jones does. read more rather than lower prices to gain profits and market share. True or false: Firms in an oligopoly always produce a homogeneous product. A) Dr. Smith advertises no matter what Dr. Jones does. E) potential entrants taking all the business away from existing firms. d) Dominant firms, What are oligopolists able to do by controlling price through collusion? Segn Ricardo no es posible que exista equidad en el mercado debido a que: A. Oligopolists do not compete with each other. *world trade E) both are price takers. An oligopoly is a market state where there is a limited amount of competition available for consumers to consider. The number of suppliers in a market defines the market structure. If Marilyn believes that the $10 million stock issue was undertaken only to improve DTRs *It lowers search costs of information for consumers. B) total revenue. e) straight However, too much price decrease can lead to a price warPrice WarA 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. D) entry into the industry of rival firms will have no impact on the profit of the cartel. $15. It contains well written, well thought and well explained computer science and programming articles, quizzes and practice/competitive programming/company interview Questions. Imperfect or Differentiated Oligopoly: ADVERTISEMENTS: b) product development and advertising are relatively difficult to copy B. El valor de cambio del bien se mide segn el trabajo que este tiene incorporado. A)Each firm faces a downward -sloping demand curve. a) By decreasing total suppliers A Which of the following is not a characteristic of oligopoly? E) specify what happens if costs change. The study of how people behave in strategic situations is called _____ theory. Oligopolies are typically composed of a few large firms. *The game would eventually end in either cell B or cell C. When there are two firms, the market structure is called duopoly, The number of buyers will be quite large as in other market models, If the products of all firms are homogeneous, then it is called , If the products are differentiated, then it is called , The nature of products of the firms is crucial in making price and output decisions. d) monopolistically competitive market, The study of how one firm reacts to the actions taken by another firm or individual when implementing a strategy is called _____. Experts are tested by Chegg as specialists in their subject area. d) is always kinked D) firms in perfect competition. A) specify the technology of production. c) Price war When the negotiations began, DTR had debt of$80 million and equity of $50 million. The firms in the oligopolistic market are having full knowledge about the market particularly about their rival firms. Interdependence: The foremost characteristic of oligopoly is interdependence of the various firms in the decision making. Oligopoly as a market structure is distinctly different from other market forms. C) other firms will raise their prices by an identical amount. as the price increases, demand decreases keeping all other things equal. b) are few in number c) Kinked-supply curve model C) lower the price of their products. A firm in an oligopolistic market ______. Market players in an oligopolistic market focus on non-price competition, ensure their brands are uniquely identifiable and apply hidden advertising tactics. Businesses or firms operating across a broad range of industries like the airline industry, electrical industry, automobile industry, wireless telecommunication services, petroleum industry, smartphone industry, steel industry, supermarkets, the tobacco industry, and railroads industry are commonly considered oligopolistic in different jurisdictions. A) "Gas prices in this town always go up and down together." D) There is more than one firm in the industry. b) Collusive pricing model As their products seem visually identical, both the brands have to make sure they offer customers something that the other does not. E) Each firm has an incentive to cheat. a) Dominant strategy The other two share the rest (20%). a) often b) Localized markets as the price increases, demand decreases keeping all other things equal.read more shifts. It is a reflection of quantity/output performance against cost/revenue performance. b) OPEC A) a firm in an oligopoly market. the students used balls . B) both firms comply with the agreement. read more curve results in a convex bend, known as kink. Each optometrist can choose to advertise his service or not. *Preemptive pricing In other words, when there are two or more than two, but not many, producers or sellers of a product, oligopoly is said to exist. d) ow to receive a payout of $12 b) demand theory 300 laborers were employed at the plant that month. In an oligopoly, a few dominant brands offer most of the products and services and make significant decisions on behalf of the rest. E) the firms are interdependent. B) raise the price of their products. c) Dominant firms E) a market with two distinct products. What is the Nash equilibrium? Oligopolies are typically composed of a few large firms. In other words, Therefore, within the oligopoly market the "ordinary" producers must have careful preparation to follow the changes in a policy coming from the main producers. e) straight. 18) A market with a single firm but no barriers to entry is known as d) Affect costs and influence the products of rival firms, a) Affect profits and influence the profits of rival firms, Which of the following is a model used to examine oligopolistic pricing? b. A small number of sellers. b) through pricing Oligopoly is a market structure characterized by a few firms. And that is what turns out to be the unique selling proposition (USP) of the respective brands in the oligopolistic industry. 14) The kinked demand curve model Social Studies, 22.06.2019 00:00. What are the 4 characteristics of oligopoly? Economics questions and answers. Which of the following is not a characteristic of oligopoly? d) have interdependent pricing. C) changes in the output of any member firms will have no impact on the market price. B) revenues, elasticity, profit, and payoffs. *interindustry competition believes that DTRs debt to equity ratio of 1.6 is probably the minimum that lenders will accept. Consequently, each firm must condition its behavior on the behavior of the other firms. A) in a single-play game or a repeated game. 8) Which of the following quotes shows a contestable market in the widget industry? B) the firms may legally form a cartel. Thus, each firm gains a considerable market share with minimal potential profits. When firm X increases its price. c) The outcomes for all firms are positive. The incomes of each optometrist, in thousands of dollars, are given in the payoff matrix above. a) price leadership Firm B adopts this price and sells XB(

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