Question

What do Sony, Microsoft, and Nintendo have in common? A The profitability of each firm depends...

What do Sony, Microsoft, and Nintendo have in common?

A The profitability of each firm depends on its interactions with other firms.
B Each achieved a dominant position in its industry because it owned a key input in the production of its product.
C The industry in which each firm competes is an oligopoly because of government-imposed barriers to entry.
E Each company was founded in the same state.

Homework Answers

Answer #1

All three companies - Sony, Microsoft, and Nintendo compete with each other in gaming console market.

This market has few firms and thus is oligopolistic in nature.

When a market is oligopoly, firms are interdependent. In other words, one firm's pricing and output decisions are based on the actions of its competitor. This is crucial for maintaining profitability.

Thus, it can be stated that the profitability of each firm depends on its interactions with other firms.

Hence, the correct answer is the option (A).

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
The gaming console market is dominated by the likes of Microsoft, Sony, and Nintendo. If each...
The gaming console market is dominated by the likes of Microsoft, Sony, and Nintendo. If each company is willing to match price decreases but not price increases, this would result in: a) a kinked demand curve. b) a homogeneous demand curve. c) an upward sloping demand curve.   d) a horizontal demand curve. The kinked demand curve model in an oligopoly market assumes that if a firm raises prices for its products, its competitors will: a) raise its own prices. b)...
Read and analyze the response below. do you agree? why or why not? What do you...
Read and analyze the response below. do you agree? why or why not? What do you think? explain. (5 Sentences Minimum) In an oligopolistic industry, these firms are very big and they dominate the market due to its large quantity. To have entry and exit are high due to high fixed costs and supply chain issues. Both these conditions are satisfied in the beer industry, so it is considered an oligopoly.Even though there are dozens of independent firms, each firm...
True or false 15) Microsoft was charged with violating the antitrust laws not because it had...
True or false 15) Microsoft was charged with violating the antitrust laws not because it had a virtual monopoly in the form of its Windows operating system, but because it acted like a monopolist in trying to control the market for certain software applications. Answer: 16) Mutual interdependence among firms is one of the key characteristics of an oligopoly market that distinguishes it from the other three major market structures. Answer: 17) One of the surprising conclusions of many of...
Question 1 1) Monopolists have a 100% market share or a more than 50% market share...
Question 1 1) Monopolists have a 100% market share or a more than 50% market share ( a near monopoly in the US). Market share measures: a. the total sales of a business b. the growth of sales of a business over a year c. the sales of a business as a percentage of total sales in a market d. the profits of a business as a percentage of total profits in a market 20 points Question 2 2) In...
g 1) Farmers can plant either corn or soybeans in their fields. Which of the following...
g 1) Farmers can plant either corn or soybeans in their fields. Which of the following would cause the supply of soybeans to increase? A) an increase in the price of soybeans B) a decrease in the price of corn C) an increase in the demand for corn D) an increase in the price of soybean seeds E) an increase in the price of tomatoes 2) For a perfectly competitive firm, which of the following is not trueat profit maximization?...
1) Consider a firm that uses only capital and labor. In the short-run the firm: A....
1) Consider a firm that uses only capital and labor. In the short-run the firm: A. Will never face diminishing returns to labor B. Faces diminishing returns to labor because capital cannot be changed C. Faces increasing returns to labor because capital is variable D.Faces diminishing returns to capital because labor can be changed 2) Tim started a lawn mowing business during summer break using his family's lawn mower, which statement best explains the shape of the production function? A....
21. The “prisoner’s dilemma” facing a cartel is that A) what is good for the cartel...
21. The “prisoner’s dilemma” facing a cartel is that A) what is good for the cartel is bad for society as a whole B) the production level that is best for a self-interested firm may not be what is best for the cartel as a whole C) what is good for the cartel as a whole is to maximize production; the dilemma is that individual cartel members may not want to share technology secrets with other firms D) the profit-maximizing...
QUESTION 1 Which of the following factors would most likely lead a firm to adapt its...
QUESTION 1 Which of the following factors would most likely lead a firm to adapt its products for international markets? Exporting as the sole method of international marketing Similar levels of personal income Diverse consumer preference Economies of scale in production 2 points    QUESTION 2 Why would a firm research the marketing infrastructure of a foreign market prior to entry? To determine whether its prices will be competitive. Primarily to understand the role of the media including TV, print,...
What role could the governance of ethics have played if it had been in existence in...
What role could the governance of ethics have played if it had been in existence in the organization? Assess the leadership of Enron from an ethical perspective. THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among the top Fortune 500 companies, collapsed in 2001 under a mountain of debt...
Question 1 2.5 pts 1. The perfectly competitive firm's demand curve is horizontal at the market...
Question 1 2.5 pts 1. The perfectly competitive firm's demand curve is horizontal at the market price. True False Flag this Question Question 2 2.5 pts 2. In perfect competition, the market price is established at the intersection of the market demand and market supply curves in the industry and the individual firms are "price takers" of that market price. True False Flag this Question Question 3 2.5 pts 3. The perfectly competitive firm will continue to produce in the...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT