Question

Game theory is often used to explain pricing in monopoly markets, where the monopoly tries to...

Game theory is often used to explain pricing in

monopoly markets, where the monopoly tries to fool the regulators and get a higher price

situations where a firm has a natural monopoly

oligopoly markets

any unregulated market

Economies of scale are achieved by

producing larger quantities

producing smaller quantities

producing in a country with a larger economy.

becoming a monopoly

An oligopolistic market

has a small number of rival firms, and each is large relative to the size of the market.

is characterized by firms that merely take the price that is determined by the forces of supply and demand in the market.

has low entry barriers facing firms that may be interested in entering the market.

has a large number of firms that are small relative to the size of the market.

Homework Answers

Answer #1

1. GAME THEORY IS OFTEN USED TO EXPLAIN OLIGOPOLY MARKETS . THIS IS SO BECAUSE WHEN THE FIRM GET INTO ILLEGEAL AGREEMENTS OR PRICE FIXING BEHAVIOURS SO IN THIS MARKET GAME THEORY HELPS TO PREDICT THE OUTCOMES .

2. ECONOMIES OF SCALE IS ACHIVIED BY PRODUCING LARGE QUANTITES .WHEN WITH LESSER INPUT COSTS LARGE UNITS OF GOODS ARE PRODUCED SO THE PURPOSE IS ACHIEVED .

3.AN OLIGOPOLISTIC MARKET HAS SMALL NUMBER OF RIVAL FIRMS AND EACH IS LARGE RELATIVE TO THE MARKET. IN THIS TYPE OF MARKET SELLERS ARE VERY LESS ,BARRIWERS ON ENTRY AND EXIT ARE THERE . SO EACH FIRM INFLUNCES THE MARKET .EACH AND EVERY FIRM PRODUCES A BIG AMOUNT OF SHARE FOR THE MARKET , SO SLIGHT CHANGE IN THE BEHAVIOUR OF ONE FIRM WILL AFFECT THE MARKET SHARES OF OTHER FIRMS WHICH ARE RIVALS .   

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Which type of market environment (perfect competition, monopolistic competition, oligopoly, or monopoly) is each description below...
Which type of market environment (perfect competition, monopolistic competition, oligopoly, or monopoly) is each description below characterizing?             The industry is characterized by interdependent behavior                         _________________________________________________________             The several firms in the industry each produce a slightly differentiated product                         _________________________________________________________ The industry is made up of a single seller                         _________________________________________________________             The industry has a very large number of very small firms, each producing an identical product                         _________________________________________________________             The industry is made up of a...
1. A firm in any market structure will shut down production, producing zero output, if the...
1. A firm in any market structure will shut down production, producing zero output, if the market price: a)falls below the average variable cost. b)rises above the average variable cost. c)is greater than zero. d)is equal to average cost. 2. Which is a feature of the purely competitive market model? a)a very large number of small-sized firms exist in the relevant industry. b)firms are blocked from entering the market by laws, patents or high initial, start-up capital costs or past...
[7] Markets with a large number of sellers producing identical products, and that are easy to...
[7] Markets with a large number of sellers producing identical products, and that are easy to enter and exit are: A) oligopolistic. B) monopolized. C) purely competitive. D) monopolistically competitive. [8] An individual seller has no control over the price of its product in: A) oligopoly. B) pure competition. C) monopolistic competition. D) all of the above. [9] The price a purely competitive seller can get for its product is determined by: A) government regulators. B) the forces of supply...
1. Firms can be price searchers in each of the following markets, except for ______________. A....
1. Firms can be price searchers in each of the following markets, except for ______________. A. perfect competition B. monopoly C. oligopoly D. monopolistic competition 2.Which of the following statements is false? A. Sunk costs are an important factor in determining entry into a market because these costs may be quite high. B. Sunk costs are an important factor in determining entry into a market because sunk costs cannot be recouped. C. Sunk costs are not relevant to the firm’s...
Which of the following is not a characteristic of the structure of perfectly competitive markets? Each...
Which of the following is not a characteristic of the structure of perfectly competitive markets? Each individual firm is small in size relative to the overall market. Few sellers. Homogeneous product. Easy, low cost entry and exit. QUESTION 2 In the perfectly competitive market, all firms in the market are assumed to be producing: Identical products. differentiated products. products that are heavily advertised. complimentary products. QUESTION 3 Which of the following is characteristic of a perfectly competitive market? There is...
An illegal monopoly must have (10)________________that protect him from competition entering his market. He cannot be...
An illegal monopoly must have (10)________________that protect him from competition entering his market. He cannot be selling a product that has many close (11)                                                           . His demand curve is very steep because demand for his product is very (12)_________ The monopolist will restrict his ____________to get the highest price. Long run market demand must be (14)______for a Cartel to survive and do well. Long run market supply must be (15)________for a Cartel to survive and do well. According to Hotellings...
1. Compared with a perfectively competitive market a monopoly is inefficient because                    a. it raises...
1. Compared with a perfectively competitive market a monopoly is inefficient because                    a. it raises the market price above marginal cost and produces a smaller output.             b. it produces a greater output but charges a lower price.             c. it produces the same quantity while charging a higher price.             d. all surplus goes to the producer.             e. it leads to a smaller producer surplus but greater consumer surplus. 2. The demand curve of a monopolist typically...
1.A firm is a pure monopoly when: a.it is the only seller of a unique product...
1.A firm is a pure monopoly when: a.it is the only seller of a unique product and barriers to entry prevent other sellers from entering the market in the long run. b.it is the only seller of a product that has very few close substitutes and entry into the market in the long run is unrestricted. c.there are only a few other very large firms selling similar products. d.it can sell all it can produce at any price it chooses....
36. Some consumer surplus remains under each of the following EXCEPT                        A) two-part pricing with...
36. Some consumer surplus remains under each of the following EXCEPT                        A) two-part pricing with multiple consumers B) third-degree price discrimination C) first-degree price discrimination D) block pricing 37. In the case of an increasing cost industry in which consumer demand has decreased A) the final, long run price will be higher than the price at the very beginning B) the final, long run price will be lower than the price that first emerges in the short run after...
Which of the following is most likely true of your business strategy if you decide to...
Which of the following is most likely true of your business strategy if you decide to open a small local theater? You will need to get the top movies to compete directly with the theater chains You will not be able to succeed due to barriers to entry You will likely look to run independent films or otherwise avoid directly competing with theater chains Barriers to entry will be your best chance of achieving economic success Antitrust laws will probably...