What is the Sweezy oligopoly market structure: a. Identify the optimal price and output to maximize...

What is the Sweezy oligopoly market structure: a. Identify the optimal price and output to maximize profits.

b. Why is the price sticky?

c. Identify the cost of each firm?

Expert Solution

Oligopoly is market dominated by small number of large seller it is a result of various form of collision which reduce competition and create higher price market for consumers.

Professor Paul M Sweezy developed kinked demand curve model which is based on oligopoly .With the use of this curve he explain the price rigidity in oligopoly market structure.
The main base of these model is explain the behaviour of oligopolistic organization not price output determination.

The key Assumptions of sweezy model is that it forms believe is

Rival will not follow price increment according to this assumption when firm increase price not only when firm rise price not only consumers but firm also loose their some seller due not matched the high price.

There is only two conditions when oligopoly market maximize

Fixed price of output
Producing that quantity of output where marginal revenue equal to marginal cost

Why is the price sticky?

Price sticky is a situation in which prices is resistant to change.they do not go up and down as soon as demand rises or fall.They are not even fluctuate as production cost change.

Rahul Sunny answered 6 days ago

How do firms in an oligopoly market structure set prices and output?

Write (2) page paper on the market structure oligopoly. Identify an industry or market that is...

Write (2) page paper on the market structure oligopoly. Identify an industry or market that is an oligopoly and tell us who the companies are, what products or services they provide and the percentage of their market share.

What is the oligopoly market structure of the music industry?

if members of an oligopoly collude, what happens to output, price and profits?

1.) What is Price Fixing in an Oligopoly Market? Why do Oligopoly firms engage in price...

1.) What is Price Fixing in an Oligopoly Market? Why do Oligopoly firms engage in price fixing? Is price-fixing legal or illegal in the United States? 2.) What is Price Leadership? Is Price Leadership legal or Illegal in the United States for Oligopolies? Why do Oligopoly Firms engage in Price Leadership?

Market Structure and the Determination of Market Price To prepare for this Discussion: Identify an example...

Market Structure and the Determination of Market Price To prepare for this Discussion: Identify an example of a health care good or service to explore for this Discussion. The following list of submarkets may guide your consideration, but you may select an example from a different area. Physician services Nursing services Medical technician services Physical facilities (e.g., hospitals, specialized, imaging, long-term care) Medical technology Pharmaceuticals By Day 4, post a cohesive response that addresses the following: Describe an example of...

5) The goal of an oligopoly is to maximize

5) The goal of an oligopoly is to maximize A) Market share to achieve long-run economic profit. B) Short-run profit to achieve long-run market share. C) Profit in the short run and to minimize cost in the long run. D) Short-run profit to achieve long-run maximum revenue. 6) An increase in the price of butter is likely to cause: A) the demand for butter to stay the same. B) the demand for butter to increase. FACES C) the demand for margarine to increase. D) the demand...

Identify Target market structure (i.e., perfect competition, monopolistic competition, oligopoly, and monopoly), explaining your reasoning.

1. Optimal Capital Structure: Is there an easily identifiable debt-equity ratio that will maximize the value...

1. Optimal Capital Structure: Is there an easily identifiable debt-equity ratio that will maximize the value of a firm? Why or why not? 2. Financial Leverage: Why is the use of debt financing referred to as a financial "leverage" 3. Capital Structure Goal: What is the basic goal of financial management with regard to capital structure?

identify the market structure for ExxonMobil. what is the current market share. identify local and global...

identify the market structure for ExxonMobil. what is the current market share. identify local and global competitors. analyze the barriers to entry this market. to illustrate the potential for new competition and its impact on ExxonMobil future in the market. identify the trends in the last three years 1. current stage of the business cycle 2. real gross domestic product 3. inflation as measured by consumer price index 4. unemployment rate 5.federal funds rate 6. current rate for borrowing funds...

Question