It is important to understand oligopoly markets because:
a. although few real world markets are oligopolies, their existence raises interesting theoretical questions.
b. oligopolies typically generate more deadweight loss than monopolies.
c. oligopolies can generate a whole range of possible outcomes between monopoly and perfect competition.
d. one can predict the market outcome exactly just by knowing the number of firms in the market.
c
You might also like to view...
Consider the market for cable television, a natural monopoly, shown in the figure above. If the regulator imposes an average cost pricing rule, the firm provides service to
A) 3.5 million households. B) 6 million households. C) 10.5 million households. D) 12.5 million households.
If investment in capital equipment requires two to three years between conceptualization and start-up to production, then
A) the gap between the desired capital stock and the existing capital stocks is closed slowly. B) a change in expected sales will not increase output. C) V* will be smaller than expected. D) All of the above are correct.
An economy in which output has decreased and prices have increased would suggest that there has been a:
A. negative demand side shock. B. negative supply side shock. C. positive demand side shock. D. positive supply side shock.
what technological change can affect employment patterns across industries?
What will be an ideal response?