Suppose that an industry has high fixed costs to enter but, other than that, is competitive. A. What will be the effect of the high fixed costs to the number of firms in the industry? To the firm size What are some real-life examples of oligopoly ma...
We formulate an oligopoly model in a mixed market, in which a welfare-maximizing public firm competes against profit-maximizing domestic private firms and foreign private firms. Firm 0 is the public firm, and there exist n domestic private firms (firm 1, firm 2,…, firm n) and m foreign ...
Since increased productive efficiency and market power often co-exist in horizontal mergers, however, net average wealth effects tell us only which one dominates. In this study, we examine wealth transfers between merging firms and their customers. We find that, while average abnormal returns ...
If a firm earns zero economic profit in the long run, then it: A) must be in a perfectly competitive market B) must be in a monopolistically competitive market C) cannot be in a monopolistically competitive market D) is not an oligopoly E) could be in any ...
The models of the firm most often discussed under imperfect competition include monopolistic competition, monopoly, and oligopoly. Monopolistic competition, though imperfectly competitive, comes close to the theoretical model of perfect competition. Although each firm in such an industry is its own price...
The value of an operating system (or its application store tied into it) increases with the number of its users - and the number and breath of software applications available. In operating systems, that’s often the dominant factor effecting their popularity. They are a ...
a continuum from pure competition through monopolistic competition and oligopoly(商品供应垄断)to monopoly. At one end of the continuum, pure competition results when every company has a similar product. Companies that deal in commodities such as wheat or corn are often involved in pure competition....
weak reducesretailers’optimalex-anteinventorylevels.Whendemandishigh salesarecappedbyinventoryandcompetitionislessintense.Themodified productmarketbehaviorinducedbytradecreditfinancingincreasesthepro- ducersurplusattheexpenseofconsumersinoligopolymarkets,whilewe findnobenefitforproducersineithermonopolyor...
Why is there a price rigidity in the oligopoly? Explain why prices are not normally factored into the long-run economic growth models. Explain the reason for non-competitive price in an industry with a strong economies of scale. If a firm in a perfectly competitive market is losing money, ...
A. higher; more firms in B. lower; more profitable C. lower; less competitive D. higher; less competitive Competition in an Industry: The level of competition in an industry is often measured by the distribut...