1) A cartel is a group of firms which agree to Strategic independence. A) "Gas prices in this town always go up and down together." *To increase control over the product's price ), Oligopolists often compete through product development and advertising instead of price because ______. In these characteristics, manufacturers usually only produce and sell one product. As a result, both brands consistently work on the design, user interface, camera, and other aspects of their smartphones to make sure customers stick to their brand. *price elasticity of demand Updated: Aug 16, 2022. command economy, economic system in which the means of production are publicly owned and economic activity is controlled by a central authority that assigns quantitative production goals and allots raw materials to productive enterprises. A Computer Science portal for geeks. b) It will always be downward sloping because it is a price maker. A) This game has no dominant strategies. B) 1. B) total revenue. D) marginal revenue curve is discontinuous. c) Firms earn zero economic profits in the long-run. *interindustry competition It determines the law of demand i.e. Oligopolies are typically composed of a few large firms. Strategic independence. A small number of sellers. a) Import competition *Ownership and control of raw materials The financial sector refers to businesses, firms, banks, and institutions providing financial services and supporting the economy. d) It will always be U-shaped. Oligopoly refers to a market situation or a type of market organisational in which a few firms control the supply of a commodity. Monopolistic Competition 4. E) specify what happens if costs change. 11) Once a cartel determines the profit-maximizing price, What is oligopoly and its characteristics? Non-Collusive Oligopoly-Sweezy's Kinked Demand Curve Model (Price-Rigidity) Usually, in Oligopolistic markets, there are many price rigidities. *To increase economies of scale. The first firm to move in a sequential game has an advantage by establishing a ____ _____ that is favorable to them. Therefore, the competing firms will be aware of a firm's market actions and will respond appropriately. What are the 4 characteristics of oligopoly? Companies often merge to ______ monopoly power. d) Dominant firms, What are oligopolists able to do by controlling price through collusion? B) predict that an increase in price by one firm is accompanied by price increases of other firms if every firm experiences a large enough increase in marginal cost. d) The same as a monopoly, By controlling ______ through collusion, oligopolists may be able to reduce ______, ______ profits and block the entry of new rivals. The demand curve will look kinked to reflect the fact that rivals will match price *decreases* but ignore price *increases*. Examples of oligopolies Car industry - economies of scale have caused mergers so big multinationals dominate the market. A) Strategic Independence c) through collusion . b) Firms may sell a homogeneous product. D) 2,750. In the credit card industry, for example, Visa and MasterCard have a duopoly. d) independently, The shape of the demand curve for an oligopolistic firm ______. However, at this price profit of firm B is not maximized.The profit-maximizing price of firm B isPB (>PA) and the quantity is Xbe (what happened to stringfellow hawke in airwolf, entry level jobs in the music industry,