Discuss The Oligopolist’s Problem, Collusion Strategy And Cartel

Expert Solution

Rahul Sunny answered 2 years ago

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.

1. Explicit collusion by members of a cartel is illegal in the United States and many...

1. Explicit collusion by members of a cartel is illegal in the United States and many other countries. Nonetheless, cartels do manage to form and, in some cases, persist for extended periods. Can you identify actions cartel members could take that might help them coordinate their actions but stop short of explicit agreements? 2. List five examples of markets that you would consider to be oligopolies (a few firms engaged in strategic competition). For each example, explain whether you think...

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.

‏a. What is a cartel? Why is OPEC considered a Cartel

Briefly discuss the concept of "collusion" and how oligopolistic firms can benefit from it..

The article is headed Collusion: Exploitation or benefit? Discuss Whether there is sufficient evidence provided to...

The article is headed Collusion: Exploitation or benefit? Discuss Whether there is sufficient evidence provided to support that statement

1. What is a cartel? 2. Is a cartel legal in the U.S? 3. If a...

1. What is a cartel? 2. Is a cartel legal in the U.S? 3. If a cartel is illegal, do they sometimes form? 4. Once formed, is there an incentive to cheat on the cartel?

In the collusion game, we found that collusion was only sustainable in the infinite horizon repeated...

In the collusion game, we found that collusion was only sustainable in the infinite horizon repeated game. One Nash Equilbrium of that game can be found when all players play a “grim trigger” strategy, where they collude until an opponent chooses to compete, and then compete for all future rounds as a punishment. In such a game, if the one period bonus that comes from competing is low enough, firms always collude and the punishment is never triggered. However, let’s...

1. If a cartel succeeds in maintaining the cartel price but cannot prevent the entry of...

1. If a cartel succeeds in maintaining the cartel price but cannot prevent the entry of new firms into the industry: a. the industry’s total output level will rise. b. entry continues until the equilibrium average cost equals the fixed cost. c. entry continues until the equilibrium marginal cost equals the fixed price. d. All of the above are correct. 2. For a competitive firm, marginal revenue equals average revenue because the: a. firm’s supply curve is horizontal. b. industry’s...

Provide an example of cartel and explain what facilitated the formation of this cartel or what...

Provide an example of cartel and explain what facilitated the formation of this cartel or what made the Cartel break down.

Question