\"'J'_' _. . _____ . __""""'J . __..__. . .._._. ..._ 'r Consider the oligopoly model-- \\ 1. List four major characteristics of an oligopolistic industry.r r r .7 519537?\" T r 2. Name a product that you purchase that you think is produced and or sold in an oligopolistic market. . Explain your answer.-- 3. Now imagine that you and your very good friend are both owners of different companies that produce this product. (You own Company your friend owns Company B]. Both you and your very good friend own companies of about the same size, and both companies use basically the same technology. You both face Constant Returns to Scale, at a unit price of $4- a. How do you and your friend's Long Run Average Cost curves compare\"?r Use what you have been told in this question to answer. Explain your answer. r b. Graph the LRAC that both your company and your friend's company face-- r 4. The market demand curve for this product is such that at a price of $4 per unit, consumers would be willing and able to purchase i units of the good. At an output level of B of the good, consumers are willing and able to pay $7' per unit. Use these two points to graph a demand curve. r r 5. What happens in this oligopolistic industry?~ a. What price gets charged? (An exact number is not required, simply compare and explain to the numbers provided in the question.)~ b. What output is produced? (An exact number is not required, simply compare and explain to the numbers provided in the question.)~ c. What do you and your friend do?~ Explain very clearly, making reference to: strategic behaviour, cartels, tacit/explicit collusion, cooperative outcomes, and profit.~ Please post your questions about this assignment to the Discussion Board Topic. Please contribute to answers on the Discussion Board.~