You are watching: The most common reason that oligopolies exist is
fewer firms, product differentiation, some price manage, and relatively straightforward entry but not barrier-free entry
The difference in between monopolistic competition and also pure monopoly is that in comparison to monopolistic competition, pure monopoly has...
financial earnings. This will shift demand also to the left, reducing the market share and also the economic profit
Compare the elasticity of a monopolistic competitor"s demand through that of a pure challenger and a pure monopolist...A monopolist:A monopolistically competitive firm:A perfectly competitive firm:The recommendation suggest matching to the long run price and also output for a monopolistically competitive firm is:Pure competition:Monopolistic competition:
-pure monopolist"s -monopolistic competitor"s -pure competitor"s-D3-D2-D1-Point BP=MCEfficientP=minimum ATCEfficientP>MCinefficientPEfficient
may be wanted by consumers, giving them monopoly power; yet, consumers will seek substitutes if the price is also high, making them competitive
"Competition in quality and also company might be simply as reliable as price competition in giving buyers even more for their money"...
if consumers value quality and organization even more than a reduced priceprice competition have the right to result in lower economic profit or also loss
Which of the adhering to are assets or services of oligopolists that you routinely purchase or own?...
interdependent bereason their profits depfinish not just on their own price, however likewise on the other firm"s price
Using the payoff matrix, and also assuming no collusion between X and also Y, what is the most likely pricing outcome?...
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Refer to the matrix listed below. Price collusion is mutually profitable bereason each firm would accomplish...There can be a temptation...
collusive pricing is economically preferable from the oligopoly"s viewsuggest because it outcomes in monopoly profits
Anheuser-Buschtright here have been changes in customer choices and also production technology that favor big scale production