Why does differentiating its product allow an oligopoly to charge a higher price?
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 64% (14 reviews)
By differentiating its product a firm makes the residual demand curve it faces less elas...View the full answer
Answered By
Subash Murugaih
I am leading expert in this web site couple of years and My clients are much happy with my works and services.
4.60+
309+ Reviews
539+ Question Solved
Related Book For
Managerial Economics and Strategy
ISBN: 978-0321566447
1st edition
Authors: Jeffrey M. Perloff, James A. Brander
Question Posted:
Students also viewed these Economics questions
-
1. A price-discriminating firm will charge a higher price to consumers with a relatively ________ (elastic/ inelastic) demand and a lower price to consumers with a relatively ________...
-
Would you expect a bank to charge a higher rate on a term loan or a highly leveraged transaction (HLT) loan? Why?
-
Why does sellers require higher price to be paid for acquiring "net sales" than "stocks"? Why does IRS treat stock purchase and tangible and intangible assets purchase differently in acquisition?
-
Describe who gets hurt in a recession, and how?
-
Outline activities that accountants could take to help corporations discharge their social obligations.
-
An area of an interconnected power system has two fossil-fuel units operating on economic dispatch. P 1 and P 2 are in megawatts (MW). The total load demand PD = 900 MW The variable operating costs...
-
Prove that \(b(x ; n, p)=b(n-x ; n, 1-p)\).
-
You are a young CPA just starting your own practice in Hollywood, California, after five years experience with a Big 4 firm. You have several connections in the entertainment industry and hope to...
-
What impacts do you foresee the results of this survey will have on tourism in Canada (e.g. product development, consumption behavior, tourism marketing practice, etc.) (3 marks)? Assuming the role...
-
The exposed surface of a power amplifier for an earth satellite receiver of area 130 mm by 130 mm has a diffuse, gray, opaque coating with an emissivity of 0.5. For typical amplifier operating...
-
A homogeneous- good duopoly faces an inverse market demand of p = 120 Q. Firm 1 has a constant marginal cost of MC 1 = 20. Firm 2s constant marginal cost is MC 2 = 30. Calculate the output of each...
-
In a Nash- Cournot equilibrium, does an oligopolistic firm produce at less than full capacity, at full capacity, or more than full capacity? Explain.
-
Why is the role of team leadership important? Explain.
-
The value of an investment after some time has passed is called the time value annuity value present value future value expected value
-
Showing that a problem is NP complete requires Polynomial-time Reduction. Now, a set of nodes "V" is a vertex cover. The removal of V from the graph destroys every edge. This is the VERTEX_COVER...
-
which theoretical concept is "the elephant in the room" (obvious, but not "there"): a) Globalization; b) Neoliberalism: c) Orientalism; d) all of the above?
-
Suppose S(Fi) = 50 in question 8. Average productivity for systems of this type is 6.8 FP/pm and burdened labor rate is $7,000 per month. a. Calculate function point b. Calculate total project cost...
-
Write "TRUE" or "FALSE" with regards to investment. 1. The owner of a convertible bond has the option to become a shareholder. 2. The expected return of a portfolio return is a weighted average of...
-
In your own words, define or explain each term or symbol. (a) Atm; (b) STP; (c) R; (d) Partial pressure; (e) u rms .
-
The baseball player A hits the ball from a height of 3.36 ft with an initial velocity of 34.8 ft/s. 0.14 seconds after the ball is hit, player B who is standing 15 ft away from home plate begins to...
-
The New Zealand dollar to U.S. dollar exchange rate is 1.38, and the British pound to U.S. dollar exchange rate is 0.65. If you find that the British pound to New Zealand dollar is trading at 0.5,...
-
Why might a priceleadership model of oligopoly not be an effective means of collusion in an oligopoly?
-
Determine whether each of the following is a characteristic of perfect competition, monopolistic competition, oligopoly, and/or monopoly: a. A large number of sellers b. Product is a commodity c....
-
A monopolistically competitive firm has the following demand and cost structure in the short run: a. Complete the table. b. What is the highest profit or lowest loss available to this firm? c. Should...
-
A 1 kg metal block is heated to 200 C and then dropped into a thermally isolated container with 4 kg of water and 100 gr of ice both at a temperature of 0 C. If the specific heat of water is cw=4186...
-
Why are both ER Diagrams and Relational Modeling needed when a database system is developed?
-
Which data model provides a user with the best "program-data independence"? A. Hierarchial Model B. Network Model C. Relational Model D. Entity Relationship Model Why?
Study smarter with the SolutionInn App