A distinguishing feature of an oligopolistic industry is the tension between

a.profit maximization and cost minimization.

b.cooperation and self-interest.

c.producing a small amount of output and charging a price above marginal cost.

d.short-run decisions and long-run decision

answer

watching

views

For unlimited access to Homework Help, a Homework+ subscription is required.

You have 0 free answers left.
Get unlimited access to 3.8 million step-by-step answers.

Get unlimited access

Already have an account? Log in

Insha FatimaLv10

15 Oct 2020

Unlock all answers

Get 1 free homework help answer.

Already have an account? Log in

Related questions

Suppose that, in the long run, the price of feature films rises as the movie production industry expands. We can conclude that movie production is a (an):

a. increasing-cost industry.
b. constant-cost industry.
c. decreasing-cost industry.
d. marginal-cost industry.

grayhyena396

34. All firms in an industry have the same costs. Assume that all other firms in the industry are in short-run equilibrium. However, at the current level of output of one particular firm, AC-MC>P-MR>AVC. If nothing changes, this firm should: (A) decrease its output. (B) increase its output. (C) keep output constant. (D) shut down in the short run. ((E) decrease output in the short run and shut down in the long run. (F) increase output in the short run and shut down in the long run. (G) adjust output until Total Revenue = Total Cost. (H) produce where the marginal cost curve just cuts the demand curve in the short and long run. (1) none of the above.

Suppose that the government cuts the payroll tax and that this decrease lowers the marginal cost of producing raspberry jam by $2 per case. Suppose further that the raspberry jam is produce in a perfectly competitive constant cost industry. Trace out the impact of this $2 decrease in costs on the industry. Carefully explain how the market price, industry output, per firm output, and profits are affected by the payroll tax both in the short run and the long run. How much of the $2 decrease in cost is passed on through higher prices in the long run? (You should assume that the industry begins in a long-run equilibrium).