In a market with a dominant firm， it makes sense to assume that （ ）。
A: the fringe firms will set the industry price and the dominant firm will take that price as given.
B: none of the above
C: the dominant firm will set the industry price and the fringe firms will take that price as given.
D: the dominant firm will set the industry price and the fringe firms will also make their price.
A: the fringe firms will set the industry price and the dominant firm will take that price as given.
B: none of the above
C: the dominant firm will set the industry price and the fringe firms will take that price as given.
D: the dominant firm will set the industry price and the fringe firms will also make their price.
举一反三
- Assume that firms in an oligopoly are currently colluding to set price and output to maximize total industry profit. If the oligopolies are forced to stop colluding, the price charged by the oligopolies would ________ and the total output produced will ________.
- Which of the following correctly describes an oligopoly? A: A single firm has all of the market power. B: Several firms have market power and there is free entry and exit. C: Several firms have market power and there are barriers to entry. D: Several firms take the price as given and there is free entry and exit.
- The market structure in which the behavior of any given firm depends on the behavior of the other firms in the industry is:
- If a firm in a perfectly competitive market tries to raise its price above the going market price, then:
- If, in long run equilibrium, the competitive price of some good is $16.67, then, for each and every firm in the industry,