Question

For questions (16 ) through (25) you write correct word for the blank space

According to Hotellings Paradox, an industry with a small number of sellers with large market shares will often end up offering products that are highly (16)_______

and are aimed at the (17)_______of the market.

When firms in an oligopoly have a tacit agreement to "follow the leader" in raising prices, iit is called (18) ____

Oligopolies often have a demand curve that is (19)__________above the present price because if they (20)______their prices, their rivals will NOT match them.

Their demand curve is (21)_________ below the present price because if they (22)____    their prices the rival firms WILL do the same thing.

23) Under Monopolistic Competition, firms will produce with _______capacity in the long run.

24) Firms in an Oligopoly usually have very ________start up costs for advertising and marketing.

25) The type of industry where firms produce “differentiated” products is an ________________

Answer 1