A Computer Science portal for geeks. Answered: Consider a Cournot oligopoly with n = 2 | bartleby B) This game has no Nash equilibrium. 0. OA. D) the industry is government regulated A market is deemed oligopolistic or extremely concentrated when it is shared between a few common companies. d) Its marginal revenue curve would consist of two segments What are three models used to study pricing and output by oligopolies? What happens to oligopolistic firms when a recession occurs? An oligopolistic market exhibits the followingoligopoly features: It raises barriers for new entrants to enter into the respective sector. As their products seem visually identical, both the brands have to make sure they offer customers something that the other does not. C) in a repeated game but not a single-play game. 1) A cartel is a group of firms which agree to A) behave competitively. D) There is more than one firm in the industry. Sweezy Oligopoly - based on a very specific assumption regarding how other firms will respond to price increases and price cuts. B) revenues, elasticity, profit, and payoffs. Course Hero is not sponsored or endorsed by any college or university. E) none of the above is done. You can calculate it by adding Direct Material cost, Direct Labor Cost, & Manufacturing Overhead Cost. CFA Institute Does Not Endorse, Promote, Or Warrant The Accuracy Or Quality Of WallStreetMojo. 13) Complete the following sentence. The total market demand is P(Q) = 50 - 2Q, where Q is the total quantity produced by all (active) firms in the industry. d) The market contains a few large producers. a) price changes occur slowly a) inelastic 4. (Enter one word per blank. they set up a 1 meter (100 cm) track. Oligopoly theory | Industrial economics | Cambridge University Press 13) A tit-for-tat strategy can be used Any decision taken by a firm in order to increase its sales would adversely affect the sales and hence profit of the other firms. 4. The concentration ratio is a tool that measures the market share leading companies have in an industry. E) a competitive market produces two goods. D) payoffs Updated: Aug 16, 2022. command economy, economic system in which the means of production are publicly owned and economic activity is controlled by a central authority that assigns quantitative production goals and allots raw materials to productive enterprises. b) strengthens Interdependence: The foremost characteristic of oligopoly is interdependence of the various firms in the decision making. Four characteristics of an . Which of the following is not a characteristic of oligopoly? Any change in either of them will affect the quantity/output sold by a producer. The point at which an upward-sloping marginal cost curve intersects a downward-sloping marginal revenueMarginal RevenueThe marginal revenue formula computesthe change in total revenue with more goods and units sold." a) pricing theory A few firms control most of the production and sale of a product. A price war is a competition among the competitors of the business in lowering the price of their products to gain an advantage over their competitors in price and capture a greater market share. b) collusion model *price elasticity of demand b) Firms may sell a homogeneous product. See more documents like . C. Some market power. c) kinked-demand D) increase the amount they produce. Business Economics Consider a Cournot oligopoly with n = 2 firms. C) rules, strategies, profit, and outcome.