Everything You Need in One Place
Homework problems? Exam preparation? Trying to grasp a concept or just brushing up the basics? Our extensive help & practice library have got you covered.
Learn and Practice With Ease
Our proven video lessons ease you through problems quickly, and you get tonnes of friendly practice on questions that trip students up on tests and finals.
Instant and Unlimited Help
Our personalized learning platform enables you to instantly find the exact walkthrough to your specific type of question. Activate unlimited help now!
Make math click 🤔 and get better grades! 💯Join for Free
Get the most by viewing this topic in your current grade. Pick your course now.
- Oligopoly Definitions Overview
- Oligopoly Definitions
- What defines Oligopoly?
- Types of Barriers to Entry
- Natural Oligopoly
- Natural Duopoly
- Strategies for firms
- Distinctive Features of Oligopoly
- Each are large firms, actions affect market conditions
- Forming a cartel
- Acts like a monopoly
- Understanding Oligopoly Definitions
Determine whether the following statements are true or false in an oligopoly, and why:
- Only 2 firms can compete.
- Only a small number of firms can compete.
- Natural and legal barriers of oligopoly are identical to monopoly
- At the efficient scale, one firm can produce enough for the entire market demand.
- Why might breakfast cereals made by firms be in an oligopoly market?
- Firm A is gaining more market shares than firm B and its profit is rising despite a sharp rise in the price of zinc. This is a key ingredient for both firms to create their product. In what type of market are these products sold. Explain.
- Knowing the Distinctive Features of Oligopoly
Suppose firm A and firm B sell wallets and are competitors in an oligopoly. The marginal cost of producing wallets is 0. The following table is the quantity and price for both firms for wallets.
Quantity Price 1 25 2 20 3 15 4 10 5 5 6 0
If firm A and B form a cartel, what would be the price of wallets and quantities produced to maximize their joint?
- Why would two firms in an oligopoly might want to cooperate rather than be interdependent?