What are the characteristics of oligopoly?
The following are characteristics of oligopoly:
• relatively few firms
• products may be homogeneous or differentiated
• very high barriers to entry into the industry
• possible long run economic profits
• firms exhibit a mutual interdependence--their pricing and output decisions affect the decisions and market share of each of the other firms
• difficulty determining the profit-maximizing price and output levels
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Using the GG-LL framework, analyze the effect of Libya subsidizing the Pakistani Nuclear programs
What will be an ideal response?
Which of the following would not shift the production possibilities frontier?
a. an increase in worker training b. a war that destroyed many buildings c. a technological improvement that improved fuel efficiency in cars d. a decrease in the size of the labor force e. a change to a more inefficient production process
In 1791, Alexander Hamilton suggested
a. the abolishment of all state-chartered banks b. the creation of open market operations c. the creation of a nationally chartered bank d. the abolition of the money supply e. creative accounting to deny Revolutionary debt
Which of the following would not lead to more conservation?
a. higher prices for a resource b. increased interest rates on bonds c. public awareness of increasing scarcity d. higher taxes on goods produced using the resource