In the Cournot duopoly model, each firm assumes that (select all that applies) a. Group of answer choices b. the price of its rival is fixed. c. the output of its rival is fixed. d. rivals will match price cuts but will not match price increases. e. rivals will match all reasonable price changes.
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In the Cournot duopoly model, each firm assumes that
(select all that applies)
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- 3. There are three identical firms in the market research industry. The demand is 1 – Q, where Q = q1 + q2 + q3. The marginal cost is zero. a. Compute the Cournot equilibrium b. Show that if two of the three firms merge (transforming the industry into a duopoly), the profit of these firms decreases. Explain why and use a table to show the changes. c. Show the result on profits if all three firms were to mergeFeve *747 NEW Q1 Which of the following characterize oligopoly markets? Workshop week 9 Maximizing profit under imperfect competition: monopolistic competition and oligopoly. vlogonom a. Non price competition b. Perfect information c. Only a few firms competing. d. Identical products fro A and c B and d A, b, and d B, c, and d i. ii. iii. iv. C. d. 7 Q3 In an oligopoly a. b. UCLan Centr Unive Q2 Firms in monopolistic competition can achieve product differentiation by a. Exploiting economies of scale in production b. B advertising special characteristics c. Expanding plant size d. Setting the price equal to average revenue muzzs on to amor nie! bns binen woy 06) (s muzza arts to smoa nisiqxs has sman woy ns) (d pshoq to 6 zl jsil (8 sriw.nl (d toshaq ont 916 tedW (d 916 16W (6 916 1pW (d The largest four firms are likely to have a small market share. The price is likely to equal marginal revenue. Firms will continue to produce in the long run if price is less than average cost. Firms…What is the primary strategy used by firms in oligopolistic markets to maximize profits?A. Price competitionB. Quantity competitionC. CollusionD. Non-price competition
- 9. Of the duopoly models that we studied, industry profits are highest in happiest in and consumers are a. Cournot, Stackelberg b. Stackelberg, Bertrand c. Cournot, Bertrand d. Stackelberg, Cournot e. Bertrand, CournotFigure 1.7 represents an oligopoly firm. The existing price and quantity are $10 and 2000 units. The firm's demand curve will be... PRICE (S) Figure 1.7 D2 DI a. D₁ED₁ b. D2ED2 c. D₁ED2 d. D₂ED1 2000 QUANTITY D2What are the characteristics of an oligopoly? Choose all that apply. A. One particular product or service has no substitute. B. A few large sellers exist. C. Only one seller exists. D. Products and services tend to be identical or similar.
- Compare an oligopolistic industry that has a great deal of communication among its members with an oligopolistic industry that has little communication and the firms want to maximize profits for themselves. The first industry will likely earn _________ profits and produce __________ output than the second industry. a. lower; moreb. higher; morec. lower; lessd. higher; lessExplain the general meaning of the profit payoff matrix below for oligopolists X and Y. All profit figures are in thousands. a. Use the payoff matrix to explain the mutual interdependence that characterizes oligopolistic industries. b. Assuming no collusion between X and Y, what is the likely pricing outcome? c. In view of your answer to 3b, explain why price collusion is mutually profitable. Why might there be a temptation to cheat on the collusive agreement?Which of the following apply to oligopoly industries? Select one or more answers from the choices shown. a. A few large producers. b. Many small producers. c. Strategic behavior. d. Price taking.
- Economics 1. Firms 1 and 2 compete in a Cournot duopoly. If firm 2 adopts a strategy that raises firm 1's marginal cost, Multiple Choice a)firm 1 will reduce its output. b)firm 2 will gain market share. c)firm 2 will enjoy higher profits. d)firm 1 will reduce its output and firm 2 will gain market share and enjoy higher profits.. 2. Firms 1 and 2 compete in a Cournot duopoly. If firm 2 adopts a strategy that raises firm 1's marginal cost, Multiple Choice a)firm 1 will increase its output. b)firm 2 will lose market share. c)firm 1 will enjoy higher profits. d)firm 1 will not increase its output nor enjoy higher profits nor will firm 2 lose market share. **Yes, these are two different questions. Please answer asap. Thank you!**Exercise A.1 . Compare the quantity and price of an oligopoly with those of a monopoly and those of a competitive market.10. please quikcly thanks ! Which of the following situations would create conducive environment for the practice of effective collusive oligopoly? A. Slow increase in the number of potential producers. B. Demand curve becomes less elastic for the collusive oligopoly's product. C. Rivals ignore price cuts but follow price increases. D. All firms avoid nonprice competition.