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Author Question: Which of the following explains one reason why an oligopolistic firm may have market power? (Read 57 times)

agstelzer01

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on: Oct 12, 2022

Question 1

An oligopolistic firm can earn positive profits
◦ only if it advertises its own product.
◦ only if it maintains excess capacity in the production of it product.
◦ only in the short run.
◦ because there are barriers to entry.
◦ only in the long run.

Question 2

Which of the following explains one reason why an oligopolistic firm may have market power?
◦ The market may be "contestable."
◦ There are many similar producers.
◦ The firm produces a significant fraction of total industry output.
◦ The firm always makes positive profits.
◦ The firm has diseconomies of scale.
Microeconomics ¦ Ragan ¦ 17th Edition
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Marked as best answer by agstelzer01 on Oct 12, 2022

Jaclyn92G6

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Reply #1 on: Oct 12, 2022
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agstelzer01

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Reply 2 on: Oct 12, 2022
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chereeb

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