« previous next »

Author Question: How does a dominant firm try to prevent new competitors from entering the oligopoly ... (Read 60 times)

HCHenry

  • Hero Member
  • *****
  • Posts: 591
on: Jun 30, 2018
How does a dominant firm try to prevent new competitors from entering the oligopoly market?

Question 2

In most areas, there are a large number of qualified primary care physicians whose services are highly personalized. In addition to price, factors such as age, sex, location, and personality influence the choice of physician. The primary care physician market is probably:
 a. perfectly competitive.
 b. oligopolistic.
 c. monopolistic.
 d. monopolistically competitive.


CAPTAINAMERICA

  • Sr. Member
  • ****
  • Posts: 325
Reply #1 on: Jun 30, 2018
Answer to Question 1

The higher the profits of the dominant firm and the existing fringe, the higher the rate at which new fringe members will enter the market. The dominant firm might be able to maximize the present value of its future profits by pricing below the simple single-period maximum. Such low pricing strategy by the dominant firm is referred to as a price war.

Answer to Question 2

d


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

There used to be a metric calendar, as well as metric clocks. The metric calendar, or "French Republican Calendar" divided the year into 12 months, but each month was divided into three 10-day weeks. Each day had 10 decimal hours. Each hour had 100 decimal minutes. Due to lack of popularity, the metric clocks and calendars were ended in 1795, three years after they had been first marketed.

Did you know?

In 1835 it was discovered that a disease of silkworms known as muscardine could be transferred from one silkworm to another, and was caused by a fungus.

Did you know?

Fatal fungal infections may be able to resist newer antifungal drugs. Globally, fungal infections are often fatal due to the lack of access to multiple antifungals, which may be required to be utilized in combination. Single antifungals may not be enough to stop a fungal infection from causing the death of a patient.

Did you know?

For about 100 years, scientists thought that peptic ulcers were caused by stress, spicy food, and alcohol. Later, researchers added stomach acid to the list of causes and began treating ulcers with antacids. Now it is known that peptic ulcers are predominantly caused by Helicobacter pylori, a spiral-shaped bacterium that normally exist in the stomach.

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates’s recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Dominant piebald spotting Dominant piebald spotting
Fights for dominance are normally brief, and sometimes merely displaying dominant gestures without p Fights for dominance are normally brief, and sometimes merely displaying dominant gestures without p
Coronary stent. Illustration of an angiogram revealing a coronary stent, which helps prevent closure Coronary stent. Illustration of an angiogram revealing a coronary stent, which helps prevent closure
Valves in veins open to permit blood flow, close to prevent backflow. Valves in veins open to permit blood flow, close to prevent backflow.
IUD to prevent pregnancy اللولب النحاسي لمنع الحمل IUD to prevent pregnancy اللولب النحاسي لمنع الحمل
What mechanisms prevent interspecies and same-sex breeding? What mechanisms prevent interspecies and same-sex breeding?
Video: Neuron Structure Animation

For a complete list of videos, visit our video library