All Flashcards
What are the differences between oligopoly and monopolistic competition?
Oligopoly has few firms, high barriers, and interdependence. Monopolistic competition has many firms, low barriers, and differentiated products.
What are the differences between oligopoly and monopoly?
Oligopoly has a few dominant firms, while a monopoly has a single firm. Oligopolies have interdependent decision-making, while monopolies do not.
What are the differences between a dominant strategy and Nash Equilibrium?
A dominant strategy is the best choice for a firm regardless of the other firm's actions. Nash Equilibrium is a stable state where no player can unilaterally improve their position.
What are the differences between collusion and non-cooperative behavior in oligopolies?
Collusion involves firms cooperating to maximize joint profits, while non-cooperative behavior involves firms acting independently in their own self-interest.
What are the differences between price competition and non-price competition in oligopolies?
Price competition involves firms competing based on price, while non-price competition involves competing based on factors like advertising, product differentiation, and customer service.
What are the differences between a duopoly and an oligopoly with multiple firms?
A duopoly involves only two firms, making strategic interactions simpler to analyze. Oligopolies with multiple firms have more complex interactions.
What are the key differences between perfect competition and oligopoly?
Perfect competition has many small firms, homogeneous products, and no market power, while oligopoly has few large firms, differentiated products, and some market power.
What is the impact of antitrust laws on colluding oligopolies?
Antitrust laws aim to prevent collusion and promote competition, leading to lower prices and increased output.
How does government regulation affect pricing strategies in oligopolies?
Regulation can limit the ability of firms to set prices above competitive levels, protecting consumers from exploitation.
What is the effect of deregulation on competition in oligopolistic industries?
Deregulation can increase competition by allowing new firms to enter the market, but it can also lead to consolidation and increased market power for existing firms.
How does the enforcement of intellectual property rights affect innovation in oligopolies?
Strong intellectual property rights can incentivize firms to invest in research and development, leading to new products and technologies.
What is the impact of subsidies on the output levels of firms in an oligopoly?
Subsidies can encourage firms to increase production, potentially leading to lower prices and increased consumer welfare, but also potential inefficiencies.
How do import tariffs affect domestic oligopolies?
Tariffs can protect domestic firms from foreign competition, allowing them to maintain higher prices and market share, but also reducing consumer choice.
What is the effect of price ceilings on the supply of goods in an oligopoly?
Price ceilings can lead to shortages if set below the equilibrium price, as firms may reduce production due to lower profitability.
How can government intervention address inefficiencies in unregulated oligopolies?
Intervention can promote competition, prevent collusion, and ensure that prices reflect marginal costs, leading to greater economic efficiency.
Analyze the kinked demand curve for an oligopoly.
The demand curve is more elastic above the current price (competitors don't match price increases) and more inelastic below the current price (competitors match price decreases).