Question: What is an oligopoly and why is it that prices tend to be stable under it?

What is an oligopoly and why is it that prices tend to be stable under it?

Step by Step Solution

★★★★★

3.48 Rating (178 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

When a particular market is controlled by a small group of firms An oligopoly is much like amonopoly ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

E-307-B-E-M-E (4).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!

Q:

In recent years, large financial institutions such as mutual funds and pension funds have become the dominant owners of stock in the United States, and these institutions are becoming more active in...

Q:

Why might a priceleadership model of oligopoly not be an effective means of collusion in an oligopoly?

Q:

Why does differentiating its product allow an oligopoly to charge a higher price?

Q:

Why is it that one person may tend to gain weight, even if he eats no more and exercises no less than a slim friend? Recent studies suggest that the factors that control metabolism may depend on your...

Q:

Explain why prices tend to be stable in oligopolistic markets using diagrams. (please give detailed explanation using examples)

Q:

When the threat of new entrants is low, prices tend to be: stable. higher. lower. variable.

Q:

To answer these questions, you will need to read Chapter 9, Market Equilibrium & Product Price - Imperfect Competition and please good Good format. #. Explain the 3 types of "Imperfect" market...

Q:

Multiple Choice (Underline and bold the best Answer keys) 1. Oligopoly is a market model in which A. there is a single firm. B. there are a few firms that produce the entire industry output. C. there...

Q:

Can you please help me solve these 10 Econ questions? I also attached the chapter just in case. Thanks so much!! :) MARKETS AND HOW THEY WORK 177 9.0 CHAPTER 9 LEARNING GOALS After reading this...

Q:

The Phonemin Company is a distributor of men's and women's casual clothing. It sells exclusively through its merchandise catalog, which is published four times per year to coincide with seasonal...

Q:

1. The law of demand indicates that _____ [ a. when prices rise, the quantity demanded rises, b. when prices rise, the quantity demanded falls. c. when prices fall, the quantity supplied rises. [ d....

Q:

At a college, the tuition for 1 credit hour is $500, but students are given a discount based on the following: Credit hours Discount 1-5 2% 6-10 5% 11-15 8% 16 or above 10% Write a pseudocode that...

Q:

Compare the annual life insurance premium of Garrett Townse who is 30 years old, and purchases a $100,000, 10-year level term policy using a non-tobacco rate to the premium paid by Edward Collins,...

Q:

Physicians employed by hospital systems experienced a misalignment of priorities when institutional goals such as cost control and standardized care, which may conflict with their focus on...

Q:

Rey Custom Electronics (RCE) sells and installs complete security, computer, audio, and video systems for homes. On newly constructed homes it provides bids using time-and-material pricing. The...

Q:

Eckert Company is involved in producing and selling high-end golf equipment. The company has recently been involved in developing various types of laser guns to measure yardages on the golf course....

Q:

Cool Sound Corporation manufactures a line of amplifiers that carry a three-year warranty against defects. Based on experience, the estimated warranty costs related to dollar sales are as follows:...

Q:

Winstead filed his * * * com-plaint in the United States District Court for the District of New Jersey, claiming that Jacksons album/ CD and film derived their contents from, and infringed the...

Q:

What benefits do you think the United States receives from the NAFTA? What problems do you think the United States experiences as a result of NAFTA? How do you think the United States can benefit...

Q:

Which of the following is most effective as an external monitoring device for a publicly held corporation than the others? a. Internal auditors. b. External auditors. c. The SEC. d. Attorneys.

Q:

Sleep apnea is a disorder in which there are pauses in breathing during sleep. People with this condition must wake up frequently to breathe. In a sample of 434 people age 65 and over, 106 of them...

Q:

2. Judy Johnson is choosing between investing in two Treasury secu- rities that mature in five years and have par values of $1,000. One is a Treasury note paying an annual coupon of 5.06 percent. The...

Q:

7. Below are demographic characteristics (GPA, PCAT, gender, and ethnicity) of students enrolled in pharmacy school (McLaughlin et al., 2014). Table 1 Demographic Characteristics of Students Who...