A duopoly is an oligopoly in which several firms duel for consumer demand. Show
b. False A differentiated oligopoly is a form of market organization where several different large firms produce a homogeneous commodity.
b. False Oligopoly is the prevalent form of market organization in the manufacturing sectors of industrial nations.
b. False A market may be organized as an oligopoly if there are many producers of a product, but transportation costs limit the number that compete directly on a local market.
b. False Oligopolistic markets are characterized by rivalries between firms that arise because the actions of each firm in an industry have an effect on the other firms in the industry.
b. False Limit pricing refers to the oligopolistic practice of charging a price so low that new firms are discouraged from entering the industry.
b. False The sources of oligopoly are generally the same as for monopoly, i.e., barriers to entry.
b. False Concentration ratios measure the total number of firms required to produce the total output of an industry.
b. False The Herfindahl index is equal to the sum of the market shares of all firms in an industry.
b. False If the concentration ratio for an industry is small, then the Herfindahl index is likely to be large.
b. False An oligopolistic industry is likely to have a large concentration ratio and a large Herfindahl index.
b. False The theory of contestable markets holds that an industry without barriers to entry or exit will operate as if it is perfectly competitive.
b. False The Cournot model is defined as a non-oligopolistic model.
b. False Firms described by the Cournot model assume that their rivals will keep their rates of production constant.
b. False Reference to the “Cournot” model is derived by merging “Course” and “not” into a single word and is a response to the question “Is this firm a monopolist?”
b. False The Cournot model focuses on interdependence among firms.
b. False An industry that can be described by the Cournot model will produce total output that is the same as that produced by a perfectly competitive industry, however they will charge a higher price.
b. False The kinked demand curve model describes a monopolistically competitive market.
b. False The kinked demand curve model provides an explanation of price rigidity in the face of changes in costs.
b. False The kinked demand curve model describes a demand curve that is very elastic for price cuts and less elastic for price increases.
b. False The marginal revenue curve associated with the kinked demand curve is vertical at the current market price.
b. False Oligopolists prefer to avoid engaging in nonprice competition.
b. False Collusion is illegal in the United States, but is legal in many other parts of the world.
b. False A cartel is an organization of colluding oligopolists.
b. False Cartels tend to self-destruct because each member has an incentive to cheat.
b. False Price leadership is an example of tacit collusion.
b. False The dominant-firm price leadership model describes a market structure in which a dominant firm is the price maker and all other firms are price takers.
b. False There is no general theory of oligopoly.
b. False The sector in which the size of the largest firms has grown most is banking.
b. False The sales maximization model assumes that firms will always continue to increase output until marginal revenue is equal to zero.
b. False If a firm with marginal cost equal to $2 faces a demand curve defined as QD = 100 - 5P, then revenue is at a maximum when price is $10.
b. False If a firm with marginal cost equal to $2 faces a demand curve defined as QD = 100 - 5P, then profit is at a maximum when price is $10.
b. False The movement towards globalization has been slowed by changes in the telecommunications and transportation industries.
b. False Firms in the entertainment and communications industry have grown and globalized by means of mergers.
b. False A firm’s architecture is defined by the buildings and furnishings that it owns.
b. False Successful firms concentrate on their core competencies and outsource all other activities.
b. False In order to compete successfully in global markets, firms should sacrifice agility for the economies of scale associated with large production facilities.
b. False The steel industry is comprised of virtual corporations.
b. False A virtual corporation is a temporary network of independent companies.
b. False Relationship enterprises are more limited and temporary than virtual corporations.
b. False Porter's strategic framework describes a structure based on five forces.
b. False Porter's strategic framework describes the strategies that firms should follow to maximize profits.
b. False According to Porter's strategic framework, profits will be lower in industries where suppliers have a high degree of bargaining power.
b. False If a firm produces a unique product and inspires a brand loyalty, it will tend to have higher profits.
b. False The creative company relies on six sigma to increase the efficiency of production.
b. False What are the three major means of collusion by oligopolists?Three major means of collusion by oligopolists are: cartels, informal understandings, and price leadership.
What is the effect of collusion in an oligopoly market?In an oligopoly, all firms would need to collude in order to raise prices and realize a higher economic profit. Most oligopolies exist in industries where goods are relatively undifferentiated and broadly provide the same benefit to consumers.
What is meant by collusion in oligopoly?Collusive oligopoly is a form of the market, in which there are few firms in the market and all of them decide to avoid competition through a formal agreement. They collude to form a cartel, and fix for themselves an output quota and a market price.
When oligopolists collude The results are generally?If oligopolists compete hard, they may end up acting very much like perfect competitors, driving down costs and leading to zero profits for all. If oligopolists collude with each other, they may effectively act like a monopoly and succeed in pushing up prices and earning consistently high levels of profit.
|
What is true of market price and output under a collusive agreement among oligopolists?
zusammenhängende Posts
Urheberrechte © © 2024 toptenid.com Inc.
