Which of the following most accurately explains a general distinction between oligopolists that advertise and those that do not? Unlike nonadvertising oligopolists, advertising ones allocate resources inefficiently, charge a higher price, and restrict output so that price exceeds average cost. O Advertising oligopolists decrease the price to increase sales, whereas nonadvertising ones increase prices to increase profits. O Advertising oligopolists compete using product differentiation instead of price reductions, whereas nonadvertising firms collude to form a cartel to maximize joint profits. O Advertising oligopolists set prices and output quotas to maximize joint profits, whereas nonadvertising ones use product differentiation.

Which of the following most accurately explains a general distinction between oligopolists that advertise and those that do not? Unlike nonadvertising oligopolists, advertising ones allocate resources inefficiently, charge a higher price, and restrict output so that price exceeds average cost. O Advertising oligopolists decrease the price to increase sales, whereas nonadvertising ones increase prices to increase profits. O Advertising oligopolists compete using product differentiation instead of price reductions, whereas nonadvertising firms collude to form a cartel to maximize joint profits. O Advertising oligopolists set prices and output quotas to maximize joint profits, whereas nonadvertising ones use product differentiation.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Fill in the blank and answer in 5-6 sentence only
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Ouestions 2 Boeing and Airbus are duopoly competitors for airplanes. Let us assume that worldwide market demand for airplanes is given by p=10000 -5Q and that costs of production are identical for both manufacturers and specified as C(q) -2q Calcute market price and total quantity if a) Airbus and Boeing are in Cournot competation b) Airbus and Boeing are in Bertrand competation
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