In an oligopolistic market:
one firm is always dominant.
products may be standardized or
the four largest firms account for 20 percent
or less of total sales.
the industry is monopolistically
Clear-cut mutual interdependence with respect to the
price-output policies exists in:
Assume six firms comprising an industry have market
shares of 30, 30, 10, 10, 10, and 10 percent. The
Herfindahl Index for this industry:
cannot be determined from the information
The above diagram portrays:
Refer to the above diagram. Equilibrium output is:
Refer to the above diagram. Equilibrium price is:
Refer to the above diagram. This firm's demand and
marginal revenue curves are based on the assumption
the firm has no immediate rivals.
rivals will match both a price increase and a
rivals will match a price increase, but
ignore a price decrease.
rivals will ignore a price increase, but
match a price decrease.
Refer to the above diagram. In equilibrium the
is realizing an economic profit of ad
should close down in the short run.
is realizing a loss.
is realizing an economic profit of bd
In the United States cartels are:
quite common in industries which produce
in violation of the antitrust laws.
concentrated in monopolistically competitive
encouraged by government policy so that firms
can realize economies of scale.
If the several oligopolistic firms which comprise an
industry behave collusively, the resulting price and
output will most likely resemble those of:
Advertising can enhance economic efficiency when
increases brand loyalty.
expands sales such that firms achieve
substantial economies of scale.
keeps new firms from entering profitable
is undertaken by pure competitors.
The conclusion that oligopoly is inefficient relative
to the competitive ideal must be qualified because:
industry price leaders often select a price
equal to marginal cost.
over time oligopolistic industries may
promote more rapid product development and
greater improvement of production techniques
than if they were purely competitive.
increased output due to persuasive
advertising may perfectly offset the restriction
of output caused by monopoly power.
many oligopolists sell their products in
monopolistically competitive or even purely