Question

4. At equilibrium in an oligopoly, the size of economic profits will primarily depend on

a. the degree to which the oligopolists can collectively reduce barriers to entry

b. whether the oligopolists can reduce their MOS

c. the degree to which the oligopolists can cooperate rather than compete

d. the ability of the oligopolists to remain small and unnoticed

5. In which market structures would we usually see economic profits at equilibrium?

a. only in monopoly

b. in monopoly and in monopolistic competition

c. in monopoly and strong or cooperating oligopolies

d. in monopoly and in differentiated oligopoly

e. in all market structures

6. In which market structure will we usually find the fastest spread or dissemination of new technology?

a. monopoly

b. perfect competition

c. pure oligopoly

d. differentiated oligopoy

e. monopolistic competition

Answer 1

Answer 4 ) Option C)  the degree to which the oligopolists can cooperate rather than compete

At equilibrium in an oligopoly, the size of economic profits will primarily depend on  the degree to which the oligopolists can cooperate rather than compete.

Answer 5 Option C) in monopoly and strong or cooperating oligopolies

In monopoly and strong or cooperating oligopolies market structures would we usually see economic profits at equilibrium. The reason is that they can have profits as in long time at equilibrium , there average revenue is greater than average cost.

Answer 6 Option e. monopolistic competition.

In monopolistic competition market, fastest spread or dissemination of new technology take place. The reason is that they product differentiated goods.