A. Indicate if the following characteristics exist in the oligopolistic market by writing a YES in the blank for those that do and NO for those that do not.
_____1. Easy entry into the market
_____2. Uniform pricing of the product.
_____3. Interdependence of action among sellers.
_____4. Products sold may be homogeneous or differentiated.
_____5. Nonprice competitions prevalent
_____6. Sellers enjoy a degree of market control
_____7. The seller’s marginal revenue is lower than the price.
_____8. Profit is maximized where MR+MC
_____9. A decrease in the price of one seller is usually matched by the price decreases of his rivals.
_____10. The marginal revenue curve is truncated.
B. Give the points of differentiation between pure competition and monopoly and oligopoly
As we know that there are different market structures in the econnomy as perfect competition, monopoly, monopolistic competition and Oligopoly. Oligopoly is a market structure in which there are few firm's in the market. There are barriers to entry of new firm's. There is important feature of interdependence among firm's. 1). The correct option is (NO). There are restrictions to entry of new firm's in oligopoly. 2). The cor ... See the full answer