Author Question: Which of the following is characteristic of firms operating in an oligopoly market? a. either ... (Read 73 times)

Melani1276 · **on:** Jun 30, 2018

Which of the following is characteristic of firms operating in an oligopoly market?
a. either homogeneous or differentiated products
b. mutual interdependence among firms
c. significant barriers to entry
d. All of the above characterize oligopoly firms.

Question 2

How do buyers and sellers benefit from a contract?

mmj22343 · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

d

Answer to Question 2

More value might be created if a buyer agrees to limit his ability to deal with different producers or if a seller agrees not to deal with customers other than this particular buyer. The agreement can give the seller the benefits of steady operation, avoiding the costs of shutting down and restarting production unpredictably. The buyer can benefit because a contract that ensures deliveries at predictable prices allows him to make more competitive price and delivery commitments to his own customers.