Principles of Economics (12th Edition)
12th Edition
ISBN: 9780134078779
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
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Question
Chapter 14, Problem 1.1P
To determine
Classify oligopoly.
Expert Solution & Answer
Explanation of Solution
The market for (a) Motorcycles, (b) Cruise lines and (d) Firearms can be classified as oligopolies as they are dominated by a few firms. However, the market for (b) Hotels and (e) Furniture cannot be classified into oligopoly, as there are many firms in these industries with a lot of product differentiation. Also, there is a lot of entry and exit of the firms in these industries.
Economics Concept Introduction
Oligopoly: Oligopoly is a market structure where there are only few sellers who sell similar or identical products.
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Students have asked these similar questions
What are the characteristics of an oligopoly? Choose all that apply.
A. One particular product or service has no substitute.
B. A few large sellers exist.
C. Only one seller exists.
D. Products and services tend to be identical or similar.
is an organization created a
formal agreement between a group
of producers of a good or service, to
regulate supply in an effect to
regulate or manipulate prices.
Select one:
a. Oligopoly.
b. Cartel.
c. Perfect competition.
d. Monopoly.
You see that an industry has only a few major firms. How could you best determine that this market is an oligopoly rather than monopolistic competition?
a
Look to see if there are economic profits in the short run.
b
Look to see if there are barriers to entry.
c
Look to see if there are economies of scale.
d
Look to see if price is above marginal cost.
Chapter 14 Solutions
Principles of Economics (12th Edition)
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