« previous next »

Author Question: Describe the characteristics of an oligopoly. What will be an ideal ... (Read 105 times)

TVarnum

  • Hero Member
  • *****
  • Posts: 548
on: Jun 29, 2018
Describe the characteristics of an oligopoly.
 
  What will be an ideal response?

Question 2

What is likely to happen in a used-car market if the buyers feel that the best they can do is to buy a lemon?
 
  A) The sellers of gems reap high profits.
  B) Higher gains from trade are realized.
  C) The entire market shuts down.
  D) The sellers of lemons earn high profits.


Edwyer

  • Sr. Member
  • ****
  • Posts: 337
Reply #1 on: Jun 29, 2018
Answer to Question 1

There are a small number of firms that act interdependently. They are tempted to form a cartel and collude to increase profits. They can compete on price only (if they produce identical products) or compete on price, product quality and marketing (if they produce slightly different products). Natural or legal barriers prevent the entry of new firms.

Answer to Question 2

C


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

By definition, when a medication is administered intravenously, its bioavailability is 100%.

Did you know?

Though Candida and Aspergillus species are the most common fungal pathogens causing invasive fungal disease in the immunocompromised, infections due to previously uncommon hyaline and dematiaceous filamentous fungi are occurring more often today. Rare fungal infections, once accurately diagnosed, may require surgical debridement, immunotherapy, and newer antifungals used singly or in combination with older antifungals, on a case-by-case basis.

Did you know?

There are 60,000 miles of blood vessels in every adult human.

Did you know?

Malaria was not eliminated in the United States until 1951. The term eliminated means that no new cases arise in a country for 3 years.

Did you know?

During pregnancy, a woman is more likely to experience bleeding gums and nosebleeds caused by hormonal changes that increase blood flow to the mouth and nose.

Hormones and secondary sex characteristics Hormones and secondary sex characteristics
Examples of NANDA defining characteristics Examples of NANDA defining characteristics
Changes in Land Configuration and Surface Characteristics Changes in Land Configuration and Surface Characteristics
Weather Characteristics of North American Air Masses Weather Characteristics of North American Air Masses
Under ideal conditions, a single cell of the bacterium E. coli would divide every 20 minutes to ... Under ideal conditions, a single cell of the bacterium E. coli would divide every 20 minutes to ...
Describe the Conceptual Forecasting Framework in your own words. Describe the Conceptual Forecasting Framework in your own words.
Video: Inflammation

For a complete list of videos, visit our video library