2. Consider an oligopoly market where 8 major companies dominate
the industry, Consider if the following conditions change, do you
think the change would make the market more competitive or less
competitive? Would it cause market prices to increase or decrease?
Why?
a) Mergers of firms reduce the number of companies in the
market
b) Technological progress lowers the fixed costs necessary to
achieve the minimum efficient scale.
c) Product differentiation increases: a homogenous product
becomes heterogeneous products
d) Increased...