Draw and oligolopy #1 graph and explain why it has a kinked demand curve and sticky...

Draw and oligolopy #1 graph and explain why it has a kinked demand curve and sticky prices and quantity. Explain the two other oligolopy models. Explain the pricing strategy options of a duopoly and how this "Payoff Matrix" resembles the "Prisoners dilemma."

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Rahul Sunny answered 2 years ago

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.”

Explain the rationale for a kinked demand curve for an oligopolist. Explain the benefits and/or consequences...

Explain the rationale for a kinked demand curve for an oligopolist. Explain the benefits and/or consequences to society of this situation.

7) Draw the possible kinked demand curve facing an oligopoly firm? At what point does the...

7) Draw the possible kinked demand curve facing an oligopoly firm? At what point does the firm produce? What happens to price and output if marginal costs change? Explain why there is a kink in the demand curve. What do the other firms do when an oligopoly firm raises its price and when it lowers its price?

a. Draw the graph for the market demand curve for the 3 following demand curves: Individual...

a. Draw the graph for the market demand curve for the 3 following demand curves: Individual 1: q1=20−P/2 Individual 2: q2=5−P/2 Individual 3: q3=5−P b. Obtain the consumer surplus for individuals 1, 2, and 3 separately using their individual demand curves for P=$4 c. Add the three consumer surpluses. Then confirm that you get the same answer for CS using the market demand curve you have drawn in part a. d. Repeat the exercise but now for a price of...

1) Use the current oil crises to describe the shape of the kinked demand curve that...

1) Use the current oil crises to describe the shape of the kinked demand curve that oligopolies face. 2) Do you expect oil priced to jump back up, why/why not? When? 3) What are some of the pros and cons of cheap oil? Do you prefer one set of trade-offs over the other? Please explain. 4) Provide another example of a cartel (see module for Maple Syrup and Phoebus Cartel info) Explain and provide details. Did it last? Why not?

A Explain and show the kinked demand curve theory. What is its weakness? B. Show and...

A Explain and show the kinked demand curve theory. What is its weakness? B. Show and explain the dominant firm model. C. Why do firms in a Bertrand lower price to MC?

2.1 Explain the kinked demand curve theory of an oligopoly. Include in your answer a discussion...

2.1 Explain the kinked demand curve theory of an oligopoly. Include in your answer a discussion of a contemporary oligopoly. (13) 2.2 Discuss and motivate whether the following market structures can engage in price discrimination. 2.2.1 Perfect competition 2.2.2 Monopoly

1. Using the graph of market demand curve, explain why marginal revenue is less than price.

PT1: Draw a graph that shows a market demand curve (marginal private benefits curve) and market...

PT1: Draw a graph that shows a market demand curve (marginal private benefits curve) and market supply curve (marginal private cost curve) for gasoline. The quantity of gasoline should be the label for the horizontal axis and $ should be the label for the vertical axis. Label the intersection of these as QME. PT2: Draw a marginal social benefits curve that indicates that there are negative externalities from gasoline consumption in the form of pollution. Show where Q* (socially optimal...

. List and discuss 3 reasons why wages may be downwardly sticky. Draw the demand and...

. List and discuss 3 reasons why wages may be downwardly sticky. Draw the demand and supply of labor graph to demonstrate how downwardly sticky wages can create unemployment during a contraction in the economy. Explain your graph with words.

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