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प्रश्न
List the three different ways in which oligopoly firms may behave.
उत्तर
Oligopoly firms may behave in the following three ways:
1) Cartel − In order to avoid undue competition, oligopolistic firms may engage in formal agreements or contracts. This will not only allow them to maximise their total profits together, but also capture a significant market portion.
2) Informal understanding − Each firm may decide on its own, how much units of output is to be produced for maximising its individual profit, assuming that other firms would not change their strategies and decisions regarding the units of output to be produced.
3) Advertisement and differentiated product − It may happen that the firms realise that price competition will leave them nowhere and consequently they emphasise more on advertising their products. It will enable them to capture the minds of consumers and indirectly increase their market portion.
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संबंधित प्रश्न
What would be the shape of the demand curve so that the total revenue curve is
(a) a positively sloped straight line passing through the origin?
(b) a horizontal line?
From the schedule provided below calculate the total revenue, demand curve and the price elasticity of demand:
|
Quantity |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
|
Marginal Revenue |
10 |
6 |
2 |
2 |
2 |
0 |
0 |
0 |
−5 |
What is the value of the MR when the demand curve is elastic?
Comment on the shape of MR curve in case when TR curve is a positively sloped straight line.
If duopoly behaviour is one that is described by Cournot, the market demand curve is given by the equation q = 200 − 4p and both the firms have zero costs, find the quantity supplied by each firm in equilibrium and the equilibrium market price.
What is meant by prices being rigid? How can oligopoly behaviour lead to such an outcome?
Comment on the shape of MR curve in case when TR curve is a horizontal straight line.
