Author Question: What are the characteristics of oligopoly?[br][br][b][color=#566D7E]Question ... (Read 22 times)

lak · **on:** Jun 30, 2018

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 · **Reply #1 on:** Jun 30, 2018

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