This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Why is it difficult for an oligopolist to determine its profit-maximizing price and ... (Read 19 times)

charchew

  • Hero Member
  • *****
  • Posts: 579
on: Jun 30, 2018
Why is it difficult for an oligopolist to determine its profit-maximizing price and output?

Question 2

Risk-averse people cut their risks by:
 a. diversifying their wealth into physical assets.
  b. investing their wealth into similar kinds of assets.
  c. investing their wealth only in risk-free assets.
  d. diversifying their wealth into different assets.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

cpetit11

  • Sr. Member
  • ****
  • Posts: 321
Reply #1 on: Jun 30, 2018
Answer to Question 1

It is difficult to predict how firms will react in situations of mutual interdependence. No firm knows what its demand curve looks like with any degree of certainty, and therefore it has a limited knowledge of its marginal revenue curve. To know anything about its demand curve, the firm must know how other firms will react to its prices and other policies. In the absence of additional assumptions, then, equating marginal revenue and expected marginal cost is relegated to guesswork. Thus, it is difficult for an oligopolist to determine its profit-maximizing price and output.

Answer to Question 2

D


charchew

  • Member
  • Posts: 579
Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

EAN94

  • Member
  • Posts: 307
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

Allergies play a major part in the health of children. The most prevalent childhood allergies are milk, egg, soy, wheat, peanuts, tree nuts, and seafood.

Did you know?

If all the neurons in the human body were lined up, they would stretch more than 600 miles.

Did you know?

All adverse reactions are commonly charted in red ink in the patient's record and usually are noted on the front of the chart. Failure to follow correct documentation procedures may result in malpractice lawsuits.

Did you know?

Giardia is one of the most common intestinal parasites worldwide, and infects up to 20% of the world population, mostly in poorer countries with inadequate sanitation. Infections are most common in children, though chronic Giardia is more common in adults.

Did you know?

On average, someone in the United States has a stroke about every 40 seconds. This is about 795,000 people per year.

Using Parallax to Determine Distance Using Parallax to Determine Distance
Use Fleury’s algorithm to determine Euler Circuit in the following graph. Exhibit exactly one ... Use Fleury’s algorithm to determine Euler Circuit in the following graph. Exhibit exactly one ...
Determine the # of real roots from the equation Determine the # of real roots from the equation
Determine the enthalpy change of this reaction Determine the enthalpy change of this reaction
How to calculate the DRT to determine which is more effective against the pathogen How to calculate the DRT to determine which is more effective against the pathogen
The price of rice in a small country is currently $6 per pound. In order to help low-income ... The price of rice in a small country is currently $6 per pound. In order to help low-income ...
Video: Apicomplexan life cycle Animation

For a complete list of videos, visit our video library