23. Which of the following is correct about firms in an oligopoly? a. Each firm has complete control over its own selling price. b. All firms independently charge monopoly prices. No one firm controls price, but each has an influence on thc price. d. There is no competition in oligopoly industries

23. Which of the following is correct about firms in an oligopoly? a. Each firm has complete control over its own selling price. b. All firms independently charge monopoly prices. No one firm controls price, but each has an influence on thc price. d. There is no competition in oligopoly industries

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1. If Sam and Jack each produce the same quantity of appointments as would be produced in perfect competition, the total quantity of appointments is ___ the price per lesson would be ____ , and the economic profit of Sam and Jack would be____? 2. If Sam and Jack form a cartel and produce the same quantity of appointments as would be produced in a monopoly, the total quantity of appointments would be ____, the price per appointment is ____ and the economic profit of Sam and Jack is ____? 3. Would Sam and Jack have an incentive to break the cartel agreement and lower their price to increase the number of tennis lesson appointments?
*You only need to answer question D*
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24 If oligopolies compete hard against each other, which of the following will likely occur? A They will start acting like imperfect competitors. They will start acting like monopolistic competitors. The costs for all will be driven up. DO They will all experience zero profits.