What are the three characteristic of a market

Assignment Help Custom Essay

Reference no: EM133393813

Question 1. What are the three characteristic of a market that is an oligopoly?

Question 2. Provide three examples of markets that are oligopolies.

Question 3. A. If the members of an oligopoly could agree on a total quantity to produce, what quantity would they choose (what market structure would they copy to maximize profit)?

B. If the oligopolists do not act together but instead make production decisions individually, do they produce a total quantity more or less than in your answer to the previous question? Why?

Question 4. How does the number of firms in an oligopoly affect the price and total quantity produced in the market?

Question 5. What does the prisoner's dilemma teach us about oligopolies? (hint: is it easy for firms to cooperate with each other? Explain)

Question 6. The players: American Airlines and United Airlines
The choice: cut fares by 50% or leave fares alone
•If both airlines cut fares,
each airline's profit = $400 million
•If neither airline cuts fares,
each airline's profit = $600 million
•If only one airline cuts its fares,
its profit = $800 million
the other airline's profits = $200 million

Draw the payoff matrix, find each airline's dominant strategy, and find the Nash equilibrium.(put American on the top of the payoff matrix)

Reference no: EM133393813

Questions Cloud

What are the positive and negative symptoms : What are the positive and/or negative symptoms? What are the person's struggles? What treatments have been tried and failed? What works? If you were that person

Which emotional-behavioral signs and symptoms : Is it possible to differentiate which emotional/behavioral signs and symptoms are part of a co-morbid mental disorder and which represent residuals of TBI.

Compare each of these examples from the books : Describe in detail one important scene from BOTH Nisa and The Spirit Catches You and You Fall Down. Compare each of these examples from the books

What is wrong with maria philosophy : What is wrong with Maria's philosophy? How might this idea of overtraining contribute to negative health problems such as bulimia and anorexia?

What are the three characteristic of a market : What are the three characteristic of a market that is an oligopoly - what quantity would they choose (what market structure would they copy to maximize profit)

What is a joint tenancy in common with right of survivorship : What is a joint tenancy in common with right of survivorship? What are the requirements for one? Can you locate a case in which this was at issue

Examine the legal issue of smart contracts surrounding : Examine the legal issue of smart contracts surrounding the introduction of a local CBDC, particularly in the context of Singapore's real estate finance laws

Create a procedure called dumpregisters : create a procedure called dumpRegisters that will dump the contents of each register to the screen. This includes the flags register and each independent flag

Analyse the role of the leader and the importance of trust : Explore the critical nature of relationships between people in an organisation especially with regard to leaders and followers. Identify how leaders

User Account

All Pages