Refer to Table 14-12. What is the average reenue when 4 units are sold c $80 d.
ID: 1108150 • Letter: R
Question
Refer to Table 14-12. What is the average reenue when 4 units are sold c $80 d. $400 10. Refer to Table 14-12. At what quantity does Bil maximise profts? a. 3 d. 8 12. Oligopolistic firms A. may seek to drive competitors out of business for personal reasons, even at great expense competitors out of business to gain control of the market 8. would not drive C. know lowering price that their competitors pay no attention to their pricing decisions and therefore hope to gain market share by do not pay attention to a competitor's prices because there's nothing they can do about them. 12. Predatory pricing A. will always work if markets are contestable B. is always successful because it produces profits in the long un. C. is never successful because it produces losses in the short run. D. is likely to be successful only if firms cannot enter an industry easily 13. A price war: A. is one possible consequence of oligopolistic rivalry 8. never occurs in oligopolistic markets. C. results in higher profits for sellers. D. occurs only under perfect competition. 14. In which of the following models of firm behavior do firms make strategic pricing decisions and also charge a perfectly competitive price? A. Cartel model of oligopoly. B. Contestable market model of oligopoly. C. Perfectly competitive model. D. Monopoly model. 15. Which of the following market types has a large number of firms that sell similar but slightly different products? perfect competition oligopoly monopolistic competition monopoly 31 PageExplanation / Answer
Q11 is answered below (as above questions are incomplete)
11.
Correct option: (a)
Reason: Oligopolistic markets are markets with few dominant market players who are interdependent on each other for pricing and output producing decisions. Since competition in such markets is limited, if these firms find a competitor entering the market, they will set up high entry barriers to prevent it from entering and increase competition, even if putting barriers is costly. These firms do not rish any chance of other firms entering the market and snatch their market power.