In oligopoly, firms take decisions by making assumptions about their rivals' behaviour. About which aspect of their rivals' behaviour would a firm make assumptions if it is acting according to the Cournot model? Costs Price Employment Output

In oligopoly, firms take decisions by making assumptions about their rivals' behaviour. About which aspect of their rivals' behaviour would a firm make assumptions if it is acting according to the Cournot model? Costs Price Employment Output

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

The concept of a Nash equilibrium, when applied to an oligopoly, relies on the notion that Firm A in an oligopoly chooses its own best strategy based on which consideration? based on the strategies that other firms have chosen based on the knowledge that other firms are likely to choose their strategies in response to Firm A's choice of a strategy based on the objective of maximizing the collective profits of all firms in the industry based on the internal financial information of Firm A
Define oligopoly in your own words and elaborate on the characteristics of oligopoly.
In the Cournot oliogopoly model, firms compete by setting quantities. In class we noted that as the number of firms in the market grows very large, the outcome looks increasingly like what other model we studied? Provide intuition for your answer.
Consider a Duopoly model, in which two firms decide a quantity sequentially. For the convenience, let's say Firm 1 is a dominant firm and Firm 2 is a follower. The market demand is given by P=110 - 5Q, where Q is the total output (i.e., Q=Q1+Q2). Each firm has an identical cost function, TCi=7Qi, i=1, 2. Each firm maximizes its profit by choosing the quantity. In this Stackelberg equilibrium, Firm 1 will sell how many units.
4. How does a seller in an oligopoly decide upon a sale price? 5. What are some ways in which existing firms try to prevent new suppliers from entering an oligopoly?
Which of the assumptions below are included in the assumptions for the Stackelberg model of oligopoly that we discussed in class? Buyers are price-takers Fixed number of firms Homogeneous product Single-period model O Firms simultaneously set quantities Firms simultaneously set prices Firms set prices sequentially Exactly two firms in the market
According to the lecture, the behavior of the airline industry is most closely linked to which of the following ? Group of answer choices duopoly kinked-demand curve oligopoly model perfect competition monopolistic competition dominant-firm oligopoly model.
As the number of firms in an oligopoly industry decreases, the market moves closer to a __________ market. Over the last 60 or so years, the percentage of women with paid jobs has increased significantly. Is this increase in female employment associated with an increase in the demand for labor, or is it associated with an increase in the supply of labor? How does increased immigration affect the labor market? How would the equilibrium wage and the equilibrium quantity of labor be affected?