Map t Sapling Learning macmillan learning Please answer the following four multi
ID: 1227442 • Letter: M
Question
Map t Sapling Learning macmillan learning Please answer the following four multiple choice questions. Select as many answers as are appropriate have all or most of Which of the following factors have the potential to An oligopoly arises when the sales in an industry. If oligopolists with the same marginal costs and no fixed costs compete against each other in price, it leads to all firms develop an oligopolistic market? the granting of a limited number of patents low costs of entry high economies of scale identical products many small firms, making zero profits a few large firms; making zero profit a few large firms; making a loss O many small firms; making large profits If oligopolists cooperate, they can act as resulting in Which of the following situations would most likely result in an oligopolistic market? O perfect competitors; zero profits for all O a monopoly; higher prices and profits O competitive monopolists; lower prices and profits O O local market for internet services locally regulated water market retail clothing market market for apples OExplanation / Answer
(1) In Oligopoly, Few large firms have all or most sales. If oligopolists compete for price, it leads to all firms making zero profit.
(2) Potential to develop oligopoly market:
- Granting of limited number of patents
- High economies of scale
(3) If oligopolists cooperate, they can act as Monopolist, resulting in Higher price & profits.
(4) Local market for Internet Services is Oligopoly.