Question 31 Which of the following statements about oligopoly is not correct? OA. there is no single model of oligopoly firm behavior OB. a few firms play an important role in the sale of an identical or differentiated product OC. oligopoly firms are mutually interdependent O D. all oligopolies have differentiated products

Question 31 Which of the following statements about oligopoly is not correct? OA. there is no single model of oligopoly firm behavior OB. a few firms play an important role in the sale of an identical or differentiated product OC. oligopoly firms are mutually interdependent O D. all oligopolies have differentiated products

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter17: Oligopoly

Section: Chapter Questions

Problem 4CQQ

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Consider the curve in the figure below, which shows the market demand. marginal cost, and marginal revenue curve for firms in an oligopolistic industry. In this example, we assume firms have zero fixed costs. Suppose the firms collude to form a cartel. What price will the cartel charge? What quantity will the cartel supply? How much profit will the cartel earn? Suppose now that the cane] breaks up and the oligopolistic firms compete as vigorously as possible by cutting the price and increasing sales. What will be the industry quantity and price? What will be the collective profits of all firms in the industry? Compare the equilibrium price, quantity, and profit for the cartel and cutthroat competition outcomes.
Explain what is Oligopoly and duopoly? Are firms in Oligopoly large firms or small firms? What is product differentiation, price discrimination and profit maximization under Oligopoly? Give two examples each of product differentiation and price discrimination. What is the optimum point of production and minimum cost point of a firm under Oligopoly? Explain and draw AR and MR curves as (a) kinked demand curve; (b) Collusion (cartels) and (c) Price leadership model.
Quèstion 5 When an industry has many firms, the industry is O an oligopoly if the firms sell differentiated products, but it is perfectly competitive if the firms sell identical products an oligopoly if the firms sell differentiated products. but it is monopolistically competitive if the firms sell identical products perfectly competitive if the firms sell differentiated products, but it is monopolistically competitive if the firms sell identical products O monopolistically competitive if the firms sell differentiated products, but it is perfectly competitive if the firms sell identical products
Which of the following is an assumption of the theory of oligopoly? O Firms produce and sell either homogeneous or differentiated products. O There are no barriers to entry. O a and c There are many sellers and many buyers.
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The graph shows the demand curve for cars in 2017. Suppose that the least-possible cost of producing a car is $10,000 and that the efficient scale is 10,000 cars a month. Draw the average total cost curve for a car manufacturer in 2017. Label it. The graph shows that the market for cars is a natural oligopoly with O A. 1 firm OB. 2 firms OC. 3 firms OD. 4 firms 50,000- 40,000- 30,000- 20,000- 10,000- 0- Price (dollars per car) 0 D 30 Quantity (thousands of cars per month) >>> Draw only the objects specified in the question. 50 Q
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?
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One key difference between an oligopoly market and a competitive market is that oligopolistic firms O are price takers while competitive firms are not. sell their product at a price equal to marginal cost while competitive firms do not. O can affect the profit of other firms in the market by the choices they make while firms in competitive markets do not affect each other by the choices they make. O sell completely unrelated products while competitive firms do not