Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN: 9781285165875
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Chapter 17, Problem 4QCMC
To determine
Relevance of oligopoly.
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Question 20
In the market for a brand name medicine with a single company selling the medicine,
that company is a_______Eventually, the government lets other companies sell the medicine as a "generic" alternative to the brand name. The effect of this increased competition is to_______ the medicine's price.O. monopoly, decreaseO. oligopoly, decreaseO. monopoly, increaseO. oligopoly, increase
I need the answer as soon as possible
Which of the following would most likely create the setting for an Oligopoly ?
A.
The government grants T'Challa and Nakia a patent for their respective vibranium-based electric car batteries.
B.
Market Demand is two or more times less than the quantity needed to produce at the minimum of the Average Cost Curve.
C.
Market Demand is two or more times greater than the quantity needed to produce at the minimum of the Marginal Cost Curve.
D.
Insumountable technological difficulty associated with producing similar products serves as an effective Barrier to Entry.
E.
All of the Above
Chapter 17 Solutions
Principles of Economics, 7th Edition (MindTap Course List)
Ch. 17.1 - Prob. 1QQCh. 17.2 - Prob. 2QQCh. 17.3 - Prob. 3QQCh. 17 - Prob. 1QRCh. 17 - Prob. 2QRCh. 17 - Prob. 3QRCh. 17 - Prob. 4QRCh. 17 - Prob. 5QRCh. 17 - Prob. 6QRCh. 17 - Prob. 7QR
Ch. 17 - Prob. 1QCMCCh. 17 - Prob. 2QCMCCh. 17 - Prob. 3QCMCCh. 17 - Prob. 4QCMCCh. 17 - Prob. 5QCMCCh. 17 - Prob. 6QCMCCh. 17 - Prob. 1PACh. 17 - Prob. 2PACh. 17 - Prob. 3PACh. 17 - Prob. 4PACh. 17 - Prob. 5PACh. 17 - Prob. 6PACh. 17 - A case study in the chapter describes a phone...Ch. 17 - Prob. 8PACh. 17 - Prob. 9PA
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- Question 1a. With the aid of a diagram explain how a monopolist determines how much output to produce and what price to charge. b. Explain how the perfectly competitive firm decides whether to operate or shut down in the short run. c. Explain why firms operating in monopolistically competitive markets probably will not earn an economic profit in the long run. d. Why does interdependence of firms play a major role in oligopoly but not in perfect competition or monopolistic competition? Question 2a. A producer borrows money and starts a business. He himself looks after the business. Identify implicit and explicit costs from this information. Explain. b. List and explain which of the following is a fixed cost or a variable cost for Caribbean Airlines. i. The cost of fuel used in its planes. ii. The rent on its Piarco headquarters. iii. The lease payments on its current inventory of jets. iv. The cost of peanuts it serves to passengers. v. The salary paid to the Chief Executive Officer. c.…arrow_forwardMatch the statements to complete a correct sentence A market structure with only one seller called Monopoly A market structure with few sellers called Oligopoly If the income elasticity of demand for bananas is 3.45, then banana's considered as Choose. The cost that is declining as output increase Choose. The quantity that consumer is willing and able to buy at a given price and time period is Quantity demanded The quantity that producer is willing and able to sell at a given price and time period is Quantity supplied The cost that remain unchanged regardless of of level of production called Choose. The time frame at which at least one input is fixed called Choose.. If the elasticity of demand is infinity, then the demand curve is Choose. If the elasticity of demand is zero, then the demand curve is Choose. The time frame at which all inputs are variables called Choose. If the cross elasticity of demand between good A and B is -2.7, then A and B are Choose.arrow_forwardQuestion 1arrow_forward
- When 40%<CR4<60%. a. effective competitive b. tight oligopoly c. effective monopoly d. loose oligopolyarrow_forwardA firm is operating in the United States with only two other competitors in the industry. a. It is likely this industry would be characterized as: multiple choice 1 perfectly competitive. pure monopoly. monopolistically competitive. oligopoly. b. Firms in this industry will likely earn: multiple choice 2 an economic loss. an economic profit. a normal profit. c. If foreign firms begin supplying the product, increasing the number of competitors, it is likely that: multiple choice 3 economic profits will increase. economic losses will become smaller. economic profits will fall. normal profits will increase.arrow_forwardA duopoly occurs when A. two producers of a particular good compete in the same market B. one producer of two goods sells the goods in a monopoly market C. several producers of two goods compete in a competitive market D. two producers of two different goods compete in an oligopoly marketarrow_forward
- Typed and correct answer please. Iarrow_forwardAn industry comprised of a small number of firms, each of which considers the potential reactions of its rivals in making price-output decisions is called: a. monopoly. b. monopolistic competition. c. perfect competition. d. oligopoly.arrow_forwardWhich of the following constitutes an implicit cost to the Johnston Manufacturing Company? a. Payments of wages to its office workers. b. Rent paid for the use of equipment owned by the Schultz Machinery Company. c. Use of savings to pay operating expenses instead of generating interest income. d. Economic profits resulting from current production. 2.Suppose that a business incurred implicit costs of $500,000 and explicit costs of $5 million in a specific year. If the firm sold 100,000 units of its output at $50 per unit, its accounting: a. profits were $100,000 and its economic profits were zero. b. losses were $500,000 and its economic losses were zero. c. profits were $500,000 and its economic profits were $1 million. d. profits were zero and its economic losses were $500,000. 3. Which of the following is a short-run adjustment? a. A local bakery hires two additional bakers. b. Six new firms enter the plastics industry. c. The number of farms in the United States…arrow_forward
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