Which one of the following pairs of companies is operating in an oligopoly market? O a. Pepsi and Coca Cola. O b. Adidas and Reebok. c. Nero and Costa. d. Nissan and Ferrari.
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- Sometimes oligopolies in the same industry are very different in size. Suppose we have a duopoly where one firm (Film A) is large and the other film (Film B) is small, as the prisoners dilemma box in Table 10.4 shows. Assuming that both films know the payoffs, what is the likely outcome in this case?When OPEC raised the price of oil dramatically in the mid-1970s, experts said it was unlikely that the cartel could stay together over the long term-that the incentives for individual members. to cheat would become too strong. More than fort),r years later, OPEC still exists. Why do you think OPEC has been able to beat the odds and continue to collude? Hint: You may wish to consider non-economic reasons.If the firms in a monopolistically competitive market are earning economic profits or losses in the short run, would you expect them to continue doing so in the long run? Why?
- Consider the curve in the figure below, which shows the market demand. marginal cost, and marginal revenue curve for firms in an oligopolistic industry. In this example, we assume firms have zero fixed costs. Suppose the firms collude to form a cartel. What price will the cartel charge? What quantity will the cartel supply? How much profit will the cartel earn? Suppose now that the cane] breaks up and the oligopolistic firms compete as vigorously as possible by cutting the price and increasing sales. What will be the industry quantity and price? What will be the collective profits of all firms in the industry? Compare the equilibrium price, quantity, and profit for the cartel and cutthroat competition outcomes.What is an example of a firm that operates in an oligopoly? The firms that produce operate in oligopoly. O A. strawberries O B. electric power distribution OC. breakfast cereal O D. running shoes O E. pizzawhich of the following statements about industries that are oligopolies is false? Select one a. An oligopoly with two firms is calleda duopaly, b. Firms in these industries may attempt to cooperate. C The fact that there is more than one firm in an oligopoly means that there are no barrien to entry d. Firms in these industries are interdependent
- The graph shows the demand curve for cars in 2017. Suppose that the least-possible cost of producing a car is $10,000 and that the efficient scale is 10,000 cars a month. Draw the average total cost curve for a car manufacturer in 2017. Label it. The graph shows that the market for cars is a natural oligopoly with O A. 1 firm OB. 2 firms OC. 3 firms OD. 4 firms 50,000- 40,000- 30,000- 20,000- 10,000- 0- Price (dollars per car) 0 D 30 Quantity (thousands of cars per month) >>> Draw only the objects specified in the question. 50 QWhich of the following industries is a good example of oligopoly? Answers: A. Athletic shoes B. Restaurant C. Corn D. HotelOA OB OC Alpha's Price Policy OD. High Low A с Beta's Price Policy High Low $20 $30 $20 $10 B D $10 The diagram above shows potential outcomes for two oligopolistic competitors. Beta's profits are shown in the upper right corner of each box and Alpha's profits in the lower left corner. If Alpha and Beta engage in collusion (and do not cheat), where will they end up? $15 $30 $15
- 7. As the Disney and Warner brothers are the examples of Oligopolistic industry so they must use game theory. As given in matrix below Disney Fox Films Star Trek Tangled The Joker RS100 Rs 300 Rs 80 Rs 200 Batman Rs 500 Rs 50 Rs 800 Rs 300 Either of the company can one actien movie or the other. Each value in dellars shows profits for respective movie verston a. If Fox filmS wants to make the movie about the matrix and Disney about the Tangled how much profit will Disney get? b. If Disney wants to make Star trek than Fex films can make The Joker or Batman, which one is the best choice? c. If Disney choose Tangled than Foxfilms will choose to dominate the market? d. If Fox films chooses to make Batman, which movie version will Disney choose? e. With this perfect information which movie will respective company make?PLEASE ANSWER ASAP How do you differentiate Oligopoly from a Monopoly? And how can an oligopoly market earns its profit?