1) The equilibrium quantity in markets characterized by oligopoly is often A) higher than in monopoly...

1) The equilibrium quantity in markets characterized by oligopoly is often

A) higher than in monopoly markets and lower than in perfectly Competitive markets

B) lower than in monopoly markets and higher than in perfectly competitive markets

2) Which of the following goods is more likely to be traded in a Oligopoly market?

-wireless service

-electricity

-tomaotes

-tap water

-chocolate bars

-pizza

Solutions

Expert Solution

1 - Option A

Higher than monopoly market but lower than perfectly competitive market

This is because in oligopoly , number of firms are greater than monopoly , thus output will be more than monopoly , but it has lesser firms that perfectly competitive market , hence output will be lesser than competitive market

2 - Option A

Wireless service.

This is because there are likely to be very few firms in the market , providing the wireless services. Everyone cannot enter this market hence there are restrictions. Hence this market will comprise oligopoly.

Electricity and water will more be monopoly , tomato will be competitive market and chocolate and pizza will be monopolistic. Hence option A will be correct

Rahul Sunny answered 1 year ago

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