What market structures other than oligopoly have the characteristic of one firm's actions affecting the actions of its competitors? Explain your answer
What will be an ideal response?
No other market structure has the characteristic that one firm's actions can affect the actions of its competitors. In monopoly, there are no competitors to affect. And in perfect competition and monopolistic competition, there are so many competitors that any one firm's actions have no measurable impact on its competitors. Oligopoly is unique in that it is the only market structure in which one firm's actions affect the actions of its competitors.
You might also like to view...
Without any change in the demand for labor, how will shifts in the supply of labor affect equilibrium wage and employment?
What will be an ideal response?
Suppose the equilibrium quantity of ethanol has decreased. Which of the following could have caused this change?
A) a decrease in demand B) an increase in supply C) an increase in quantity demanded D) an increase in quantity supplied
A potential benefit that comes from social regulations would be
A) higher costs. B) a cleaner environment. C) higher tax collections. D) more layoffs.
The discount rate is the interest rate that: a. banks charge on large loans
b. banks charge on loans to other banks. c. the Fed charges on loans to branches of the U.S. government. d. the Fed charges on loans to depository institutions. e. the Fed charges on loans to the public.