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1. Is a
2. What stops oligopolists from acting together as a monopolist and earning the highest possible level of profits? Is there a way for oligopolists to attempt to maximize profits? What are the risks of such attempts (and utimately, generally cause such attempts to fail)?
Since you have posted multiple questions, we will provide the solution only to the first question as per our Q&A guidelines. Please repost the remaining questions separately.
In monopolistically competitive market quantity is produced less compared to perfectly competitive market. Thus an indicator that producers will supply products below their manufacturing capacity.
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- 20. How is a monopoly (or oligopoly for that matter) able to remain that way? Okay, let's say a company has no competitors today. But won't it start having some competitors tomorrow? Explain at least one reason why a monopoly or oligopoly could be long-lasting (e.g. why other firms may not wish to enter a monopolist's market and "start a fight" with a monopolist).How is monopolistic competition like monopoly, perfect competition and oligopoly? Give two examples of price discrimination. In each case, explain why the monopolist chooses to follow this business strategy Why does price equal marginal revenue for the perfectly competitive firm? What is the relationship to the demand curve for the firm?Which of the following is true regarding monopolistic competition? Ⓒa. Each firm behaves as a monopolist, but makes no profits in the long run due to competition from close substitutes b. Save your money, and only purchase the railroads and high-end properties on the board (i.e. red, yellow, green, and blue) c. There is no such thing as monopolistic competition, it is an oxymoron d. Firms behave competitively, but they make profits in the long run because there are some barriers preventing entrepreneurs from entering the market
- If the firms in a monopolistically competitive market are earning economic profits or losses in the short run, would you expect them to continue doing so in the long run? Explain your answer Is a monopolistically competitive firm productively efficient? How can you tell? Offer one reason why a monopolistically competitive firm might be productively inefficient. Is it allocatively efficient? How can you tell? Offer one reason why a monopolistically competitive firm might be allocatively inefficient. What stops oligopolists from acting together as a monopolist and earning the highest possible level of profits? Offer two obstacles to oligopolists cooperating. Aside from advertising, how can monopolistically competitive firms increase demand for their products? What effect would doing this have on the elasticity of the firm’s perceived demand curve? Explain your answers. Would you expect the kinked demand curve to be more extreme (like a right angle) or less extreme (like a…1. The two largest cigarette producers are Phillip Morris and R. J. Reynolds. Both are considering whether to increase their price for a pack of cigarettes or keep the price unchanged. The relevant factors to consider are: 1) demand for cigarettes is inelastic, so if both firms raise prices they will increase their revenue, and 2) if one raises price and the other doesn't, they will lose market share to their rival R. J. Reynolds Increase No change Increase R: 500 million R: 400 million P: 600 million P: 300 million Phillip Morris No change R: 200 million R: 300 million P: 500 million P: 400 million Does either cigarette maker have a dominant strategy? Why or why not? Use the above matrix to answer, and assume the two companies do not cooperate For purposes of the problem, ignore the existence of other cigarette makers. 2. Does the answer to #1 change if the two firms can cooperate? 3. How would your answer to #1 change if the outcome matrix changed to the following: R. J. Reynolds…With the aid of a diagram explain how a monopolist determines how muchoutput to produce and what price to charge. b. Explain how the perfectly competitive firm decides whether to operate or shutdown in the short run. c. Explain why firms operating in monopolistically competitive markets probablywill not earn an economic profit in the long run. d. Why does interdependence of firms play a major role in oligopoly but not inperfect competition or monopolistic competition?
- Consider the model with monopolistic competition and full symmetry between the firms (internal returns to scale) in a single integrated market. Now assume that a new technology becomes available that reduces a firm's marginal cost of production by a given amount but requires a larger fixed-cost investment to implement. Suppose that all fırms adopt the new technology. How does this impact the equilibrium number of varieties and the equilibrium price? Show your work. Edit View Insert Format Tools Table1. What stops oligopolists from acting together as a monopolist and earning the highest possible level of profits? Is there a way for oligopolists to attempt to maximize profits? What are the risks of such attempts (and utimately, generally cause such attempts to fail)? 2. Using the production schedule table in question 1, Marginal Productivity reaches a maximum with the hiring of which worker? A. 3 B. 4 C. 5 D. 6 E. 7Which market has market power or not and is it good to have market power or not: 1- competitive market: 2-monopoly : 3-monopolistic competition : 4-oligopoly:
- If monopolistically competitive firms have some control over their price, why don’t they set price above ATC so they will realize an economic profit in the long run? Why do monopolistically competitive firms spend funds for the product development and advertising when this practice only adds to the firm’s costs? Explain how concentration ratios and barriers to entry into the market relate to Monopolistic Competition and OligopolyQ.3 Briefly answer the following questions with the help of examples where necessary: a. Can a monopolist set the price whatever it wants to? b. Why does a perfectly competitive firm cannot control the price? c. How perfectly competitive firm is different from monopolistic competitive firm? d. Give 2 examples of product that approximates oligopoly in Pakistan?(1) Are colleges and universities an example of purecompetition or monopolistic competition? Why? (2)Are monopolies always harmful to consumers? Whyor why not?