Oligopoly is difficult to analyze because
A. price is not a decision variable for oligopolistic firms.
B. of the complex interdependence that usually exists among oligopolistic firms.
C. there is no price competition among oligopolistic firms.
D. there is price competition among oligopolistic firms but no competition on product quality.
Answer: B
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Earth Movers & Shakers operates 3 iron ore mines. The accompanying table shows each mine's total daily production and the current number of miners at each mine. All miners work for the same wage, and each miner in any given mine produces the same number of tons per day as every other miner in that mine. Total Tons Per DayNumber of MinersMother Lode10025Scraping Bottom3010Middle Drift7515 The opportunity cost of moving one miner from Scraping Bottom to another mine is:
A. 3 tons per day. B. 0 tons per day. C. 4 tons per day. D. 5 tons per day.
In Figure 35.1, what is the opportunity cost of motorcycles in Japan?
A. 1/2 of a DVD player per motorcycle. B. 2 DVD players per motorcycle. C. 1 DVD player per motorcycle. D. 3 DVD players per motorcycle.
The oligopolist ___________ a profit in the long run.
Fill in the blank(s) with the appropriate word(s).
Consider two individuals, Wendy and Jenny, who discount delayed utilities with a weight of 1/4 and 7/8, respectively. Consuming one hamburger gives both Wendy and Jenny benefits worth 16 utils instantly and has delayed costs of 20 utils
a) If the nearby hamburger shop is closed for a week, comment on whether both individuals will consume hamburgers after a week. b) If a new shop is opened nearby, and hamburgers are available for consumption today, comment on whether both individuals will consume hamburgers.