The mutual interdependence that characterizes oligopoly arises becausea. The products of miscellaneous firms room homogeneousb. The products of assorted firms are distinguished c. Every firm in one oligopoly counts on its very own pricing strategy and that the its rivalsd. The demand curves the firms space kinked in ~ the prevailing price


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Suppose one oligopolistic producer suspect its rivals will disregard a price increase however match a price cut. In this instance the certain perceives itsa. Demand curve together being of unit elasticity transparent b. It is provided curve together kinked, gift steeper listed below the walk price than above c. Need curve as kinked, being steeper below the going price than aboved. Demand curve together kinked, being steeper above the walking price than below
If an oligopoly is challenged with a kinked-demand curve that is relatively elastic above, and reasonably inelastic below, the walking price, climate it willa. Increase complete revenue by enhancing price yet lower complete revenue by decreasing priceb. Decrease full revenue by either increasing or decreasing pricec. Increase total revenue by either increasing or diminish priced. Increase complete revenue by diminish price but lower full revenue by raising price
The kinked-demand curve version of oligopoly is beneficial in explaininga. The way that collusion worksb. Why oligopolistic prices and also outputs are very sensitive to alters in marginal costc. Why oligopolistic prices might adjust infrequentlyd. The procedure by i beg your pardon oligopolists merge with one another
A breakdown in price leadership leading to succeeding rounds of price cut is recognized asa. Border pricingb. A price warc. Informal pricingd. Price discrimination
Which two sector structures tend to be an ext commonly it was observed in the real world? a. Pure competition and pure monopolyb. Pure competition and also monopolistic competitionc. Pure syndicate and monopolistic competitiond. Monopolistic competition and oligopoly
Which statement about oligopoly is false?a. Oligopolistic firms identify their interdependenceb. Prices in oligopolies are predicted to shake widely and also frequentlyc. A couple of firms play vital role in the sales of a productd. One firm"s habits is a duty of what that rivals do
If an oligopolist"s demand curve has actually a "kink" in it, then over part interval,a. The oligopolist"s MC curve will have actually a break in itb. The oligopolist require not are afraid entry right into the industry by new firmsc. The oligopolist"s competitors will no react to its prices changes, either up or downd. Transforms in MC will certainly not cause a change in the profit-maximizing price
Price management represents a instance where oligopolistic firmsa. Alleviate their dependency on nonprice competitionb. Kind a cartelc. Challenge a kinked need curved. Tacitly colllude
(Consider this) The prisoner"s dilemma expose thata. Collusive agreements will constantly failb. The price leadership model does not workc. Nonprice vain is more rewarding than price competitiond. Sometimes when people act individually in their own self-interest, everyone is worse off 보다 if they had cooperated
d. Occasionally when people act separately in their very own self-interest, anyone is worse off than if they had cooperated
One inherent element that often tends to destroy collusion amongst oligopolists is thata. Catalyst to cheatb. Product differentiationc. Shared interdependenced. Management of the leading firm
The monopolistically competitive seller"s need curve will certainly become much more elastic thea. More significant the obstacles to entry in the industryb. Better the degree of product differentiationc. Larger the number of competitorsd. Smaller sized the number of competitors
In the SR, a profit-maximizing monopolistically competitive certain sets the pricea. Equal to MRb. Same to MCc. Over MCd. Below MC
In the LR, the price charged by a monopolistically competitive for sure seeking to maximize benefit willa. Be less than both MC and also ATCb. Exceed ATC but equal MCc. Exceed MC yet equal ATCd. Exceed both MC and ATC
Which the the adhering to is correct for a monopolistically competitive certain in LR-equilibrium?a. MC = ATCb. MC over MRc. Ns exceeds min. ATCd. P = MC
In the LR, financial theory predicts the a monopolistically competitive firm willa. Earn an economic profitb. Realize all economic climates of scalec. Equate price and also marginal costd. Have excess manufacturing capacity
Excess capacity refers toa. Amount by which actual manufacturing falls brief of min. ATC outputb. Fact that entry obstacles actually reduce the variety of firms in an industryc. Differential in between price and marginal costs that characterize monopolistically competitive firmsd. Fact that most monopolistically vain firms conference diseconomies that scale
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