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Oligopoly

Oligopoly

Please answer the following questions based on the articles 1. Discuss how the theory of cartels and joint profit maximization presented in this chapter applies to the behavior OPEC? (page 269 on Attachment) 2. (A) Describe how the ice cream industry fits the oligopoly model (B) How does the government influence o

Oligopoly pricing

On Waikiki Beach, there are two hotels, Weird and Bizarre. The practice of guaranteed price matching is illegal. If the two firms act independently (they do not engage in price fixing or any other collusive behavior), each firm will rent 50 rooms per day at a price of $50 per room and an average cost of $45 per room. Under a

Differentiating between Market Structures

Identify the market structure of McDonalds and evaluate the effectiveness of this structure for McDonalds. Please be sure to provide me the reference and/or article you use.

Basic Oligopoly Models - Ford

Ford executives recently announced that the company would extend its most dramatic consumer incentive program in the company's long history - the Ford Drive America Program. The program provides consumers with either cash back or 0 percent financing for new Ford vehicles. As the manager of a Ford/Lincoln/Mercury franchise, how

Monopolistically competitive

Which of the following industries would you classify as an oligopoly? Which would you classify as monopolistically competitive? Explain your answer. A) Athletic shoes B) Restaurants C) Watches D) Aircraft E) Ice cream

The four-firm concentration ratio

The four-firm concentration ratio a. indicates the total profitability among the top four firms in an industry. b. is an indicator of the degree of monopolistic competition. c. indicates the presence and intensity of an oligopoly market. d. is used by the government as a basis for anti-trust cases.

Monopolistic Competition / Oligopoly

Do airlines fit into the concept of monopolistic competition? Why or why not? Which of the four different market structures (perfect competition, monopoly, monopolistic competition, oligopoly) do you believe Boeing Aircraft falls into? Why?

Economics - 5 multiple choice problems

1. If a firm manager has a base salary of $50,000 and also gets 2% of all profits, how much will his income be if revenues are $8,000,000 and profits are $2,000,000. A. $250,000 B. $210,000 C. $90,000 D. $150,000 2. The industry elasticity of demand for telephone service is -2 while the elasticity of demand f

Measurement and analysis of competition

There are two separate parts to this IP: a market with CR =30 and a market with CR =80. This project concerns the measurement and analysis of competition. Each part requires you to describe the industry"; interpret "industry" to be "market structure". There is insufficient information to calculate HHI. Industry structure is

Four Market Structures

Can you help me to understand the differences between the four market structures? I have created a table that can be populated to show the differences, if you could help to provide examples of each.

Pricing Strategy

Huskte and Speedy are the only 2 companies licensed to provide transportation service from the city airport to downtown. Assume that low-price guarantees are illegal. The average cost per passenger is constant $10. Here are the possible outcomes: -Price fixing cartel. Each firm has 15 passengers at a price of $30. -Duopoly (

Infant Formula industry market

Determine the market structure (competition, monopolistic competition, oligopoly, and monopoly) that best characterizes the infant formula industry. Analysis should reference the following industry characteristics: number of firms in industry, degree of product similarity, ease of entry and exit, use of non price competition, us

Oligopoly: Underlying assumptions of the kinked-demand curve

What assumptions about a rival's response to price changes underlie the kinked-demand curve for oligopolists? Why is there a gap in the oligopolist's marginal-revenue curve? How does the kinked-demand curve explain price rigidity in oligopoly? What are the shortcomings of the kinked-demand model?

Economics and Management

Question #1: discuss "shut-down" condition for a competitive firm. The condition for shut-down is when P = AVC. Explain it. Does the firm make zero profit at that point or what? How different is the point vis-a-vis a break-even point in terms of profit? Question #2: Describe the major characteristics of monopolistic

Non existence of patents game theory implies

Non existence of patents game theory implies privately motivated innovated decisions of companies could potentially produce ? (small amount of innovation, a great deal of innovation, socially economical level of innonvation, none of the above)

Cournot Oligopoly and Elasticity of Demand

You are a truck farmer and bring produce to a farmer's market every Wednesday. You have found that on a typical day five other farmers bring their produce to market. Years of experience have taught you that you make the most money by pricing your produce at 1.15 times your marginal cost. My questions are: - What is the mar

Detailed Explanation of Monopolistic Competition

Industry structure is often measured by computing the Four-Firm Concentration Ratio. Suppose you have an industry with 20 firms and the CR is 30%. How would you describe this industry? Suppost the demand fo the product rises and pushed up the price for the good. What long-run adjustments would you expect following this change in

Industry structure overview

Industry structure is often measured by computing the Four-Firm Concentration Ratio. Suppose you have an industry with 20 firms and the CR is 30%. How would you describe this industry? Suppose the demand for the product rises and pushes up the price for the good. What long-run adjustments would you expect following this change i

Evolution of Market Structures

The 4 types of market structures are Perfect Competition, Monopoly, Oligopoly, and Monoplistic Competition. Given the dynamics of competition, think of the various sequential paths of market structures that firms can move through over time (any of the following is possible): Monoply-->Oligopoly-->Monopolistic Competition-->Pe

Industry structure

Industry structure is often measured by computing the Four-Firm Concentration Ratio. Suppose you have an industry with 20 firms and the CR is 30%. How would you describe this industry? Suppose the demand for the product rises and pushes up the price for the good. What long-run adjustments would you expect following this change i

Cournot Oligopoly

Cournot Oligopoly . Two firms compete on the quantity they produce of good a single com¬modity. They face a demand function p= f(x) where p is the price at which they will sell the good, which depends on the total quantity produced, x= x1 + x2 (x1 is the quantity produced by firm i = 1, 2). Let the demand be linear: p

4 economic questions...

Just answers the 4 questions below using some economic concepts. #1. Choose a real world industry and determine which of the four market structures (perfect competition, monopolistic competition, oligopoly, or monopoly) this industry is most closely related to. Be sure to support your answer by referring to the characteristi

Kinked Demand Curve: Oligopolistic Market

Subject: Kinked Demand Curve / Oligopolistic market Details: The kinked demand curve in an oligopolistic market is represented by the following: P = 100 - Q and P = 120 - 2*Q The oligopoly firms have constant marginal costs at MC = 40 A. Determine the profit maximizing level of output. B. Compute the profit maximiz