Explain why oligopoly firms have incentive to form a cartel and yet the cartel tends to...

Explain why oligopoly firms have incentive to form a cartel and yet the cartel tends to break down with the above game.

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Rahul Sunny answered 7 months ago

Explain how cartel theory and oligopoly are related. Does this imply that most firms in oligopolies...

Explain how cartel theory and oligopoly are related. Does this imply that most firms in oligopolies are colluding? Why or why not?

a) What is meant by mutual interdependence in oligopoly markets? Explain why oligopoly firms are unlikely...

a) What is meant by mutual interdependence in oligopoly markets? Explain why oligopoly firms are unlikely to engage in price competition. b) Discuss one advantage and one disadvantage of a monopolistic market structure compared to a perfectly competitive market structure.

Answer the following questions about oligopoly. If a group of sellers could form a cartel, what...

Answer the following questions about oligopoly. If a group of sellers could form a cartel, what quantity and price would they try to set? What is the prisoner's dilemma, and what does it have to do with oligopoly

10. Briefly differentiate between collusion among firms in an oligopoly and an actual cartel. 11. Give...

10. Briefly differentiate between collusion among firms in an oligopoly and an actual cartel. 11. Give a real world example of a duopoly and a cartel.

Briefly Explain why firms have an incentive to monitor each other's permit usage under a TEP...

Briefly Explain why firms have an incentive to monitor each other's permit usage under a TEP policy

When oligopoly firms engage in cut-throat competition it tends to result in ________. more profits fewer...

When oligopoly firms engage in cut-throat competition it tends to result in ________. more profits fewer profits zero economic profits

In five hundred words: Explain the oligopoly problem , collusion strategy , Cartel with Examples and...

In five hundred words: Explain the oligopoly problem , collusion strategy , Cartel with Examples and the conditions on how can they earn higher profits.

Two firms decide to form a cartel and collude in a way that maximizes total profits....

Two firms decide to form a cartel and collude in a way that maximizes total profits. Each firm has zero production costs and each firm is given a positive output quota by the cartel. Which of the following statements is NOT true? Select one: a. Output would be lower than if the firms behaved as competitors. b. All of the other statements are false. c. Output would be lower than if the firms behaved as Cournot firms. d. The price elasticity...

Suppose that two firms form an oligopoly in a market with the demand function P =...

Suppose that two firms form an oligopoly in a market with the demand function P = 200 − 2Q, where the market output (Q) is the sum of the outputs of the two firms: Q = q1 + q2. Firm 1 has total fixed cost of TFC1 = 50 and total variable cost of TVC1 = 20q1. Similarly, firm 1 has total fixed cost of TFC2 = 50 and total variable cost of TVC2 = 20q2. Assume that the features...

Question 6. a. Why are firms in oligopoly interdependent? b. Draw and explain the kinked demand...

Question 6. a. Why are firms in oligopoly interdependent? b. Draw and explain the kinked demand curve for oligopoly. Explain the assumption and the reasons for an oligopoly firm to have a kinked demand curve. c. Comment on the following statement: ”If one player in the game does not have a dominant strategy, it is impossible to predict the outcome of the game.”

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