Q1. Firms in oligopoly must constantly think in terms ofhow other firms in the industry will react to whatever theydo. Why do they have to do this? Why is it that firms inperfect competition and in monopoly don't have to worryabout how other firms will react?

Market structure alludes to how various businesses are ordered and separated in view of their…

Q1. Firms in oligopoly must constantly think in terms of how other firms in the industry will react to whatever th do. Why do they have to do this? Why is it that firms in perfect competition and in monopoly don't have to worry about how other firms will react?

Q1. Firms in oligopoly must constantly think in terms of how other firms in the industry will react to whatever th do. Why do they have to do this? Why is it that firms in perfect competition and in monopoly don't have to worry about how other firms will react?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Q1. Firms in oligopoly must constantly think in terms of
how other firms in the industry will react to whatever they
do. Why do they have to do this? Why is it that firms in
perfect competition and in monopoly don't have to worry
about how other firms will react?

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What is the minimum number of firms required for an industry to be an oligopoly? a. many b. 100 c. 1 d. 3
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.
2. a. Compare and contrast the oligopoly and monopolistic competition market structures.
Discuss how oligopoly market structure can help explain some of the decision-making processes by firms?
1
2. What are the behavioral assumptions in oligopoly that lead to an individual oligopolist firm facing a kinked demand curve? What's the key take-away of the kinked oligopoly model?
10. please quikcly thanks ! Which of the following situations would create conducive environment for the practice of effective collusive oligopoly? A. Slow increase in the number of potential producers. B. Demand curve becomes less elastic for the collusive oligopoly's product. C. Rivals ignore price cuts but follow price increases. D. All firms avoid nonprice competition.
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Only typed answer why is the pharmaceutical sector is an example of oligopoly.
The Competition Bureau in Canada wants to increase competition and reduce monopoly power. Thus it it worries about industry concentration in Canada. Let's assume that the Canadian halibut processing industry there are only two firms(duopoly). Under such a market structure, if one of the halibut processing firm increases its price, then the other firm in the halibut processing industry can: keep the price of its processed halibut constant and thus increase its market share. keep its price of its processed halibut constant and thus decrease its market share. decrease its price of its processed halibut and thus decrease its market share. try to achieve economies of scale. increase its price of its processed halibut and thus increase its market share.