In: Economics
Problem #5
a. In the “real world” the market structure that dominates retailing is _______________________, Firms in ____________________ market structure compete based on ________________________________________________________. They may have ____________________________________ in the short- run, but in the long –run economic profits move toward ______________________ as more firms ______________________________ and demand for a single firm’s product or services ______________.
b. The behavior of oligopolistic firms is interdependent. One way of demonstrating how oligopolistic firms may behave is chaos theory /game theory, which shows that most
cartel agreements maybe __________________________ as firms have incentive to _____________________________.
A - Monopolistic competition
Monopolistic
Product differentiation and price discrimination
Positive economic profits
Zero or normal profits
Enter the market
Declines
B - Colluded
Cheat