What are the characteristics of ...

[lak]

What are the characteristics of oligopoly?

Question 2

Which of the following is an advantage of having a marketing cooperative?
 a. Sellers get a steady supply of raw materials for their produce.
  b. Buyers get a steady supply of finished products.
  c. Sellers can save resources they would have spent on marketing and instead specialize in production.
  d. Buyers face lower risks of opportunism.

[Jayson]

Answer to Question 1

The following are characteristics of oligopoly:
 relatively few firms
 products may be homogeneous or differentiated
 very high barriers to entry into the industry
 possible long run economic profits
 firms exhibit a mutual interdependence--their pricing and output decisions affect the decisions and market share of each of the other firms
 difficulty determining the profit-maximizing price and output levels

Answer to Question 2

C

[lak]

Thanks for the timely response, appreciate it

[Joy Chen]

Gracias!