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Question 39 Which of the following may not characterize an oligopoly? A few firms
Question 39 Which of the following may not characterize an oligopoly? A few firms. No market power. High barriers to entry. Substantial control over price.
Question 41 Question for an 4 points Market Share (Percent) Pool Sweeper Producer North Star Hurricane Blue Lagoon Clean Sweep Output (Revenue) $20.000 $16.000 $2.000 $2,000 Table 25.2 Refer to Table 25.2. Assume there are only four firms in the pool sweeper industry. If Clean Sweep manages to increase its sales to $3,000 per week at the current price and the size of the market does not change, the combined weekly sales of the three other firms will Fall by $3,000 per week. Also rise Not change Fall by less than $3,000 per week. Moving to another question will save this response Question 41 of 46
YOU 1000 e College Calendar Question 44 Books Web Links MC $6.40 JATC . D 5.50 4.70 2 H 4.00 Demand 2.50 MR 3 6 7 8 Figure 24.2 In Figure 24.2, the profit maximizing monopolist will earn a profit per unit of $1.50 $4.00 $4.70 $5.50
Question 46 MC B ATC C Price or Cost (per unit) K Demand E F 1 H Quantity (per unit of time) Figure 24.1 The shaded area in Figure 24.1 represents Total revenue Total cost Total profit. Total loss.
Expert Solution
39) Oligopoly firm does not have substantial control over price because there are only few firms in the market. If one firm lowers the price, others will follow it in the fear of not loosing the market share.
Option D is correct.
41)
| Pool Sweeper | Output | Market Share | New Output |
| North Star | $ 20,000 | 50% | |
| Hurricane | $ 16,000 | 40% | |
| Blue Lagoon | $ 2,000 | 5% | |
| Cleann Sweep | $ 2,000 | 5% | $ 3,000 |
| $ 40,000 | 100% | $ 40,000 |
If output of pool sweeper rises to $3,000 while market share does not change. It means that output of three other firms combined will fall by $1,000. Option D is correct.
44) Firm operate at a point when MR = MC
At this point, price charged by firm is 5.5 at output level of 4 where ATC is also 4. Thus, profit per unit = 5.5 - 1 = 1.5
Option A is correct.
46) Shaded area represents total profit level of firm.
Option C is correct.
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