jor characteristic of oligopolistic industries is dependent pricing decisions. z
ID: 1119439 • Letter: J
Question
jor characteristic of oligopolistic industries is dependent pricing decisions. zontal demand curves for the individual firms ce-taking firms. w or no economies of scale. MC ATC Firm Industry Refer to the graphs above for a perfectly competitive market in the short run. The graphs suggest that in the long run, assuming no changes in the given information: a. Some firms will exit from this industry b. More buyers will come to the market c. New firms will enter the industry d. Buyers will leave the industry 8 $20 MC AC $16 $14 $12 10 $8 $6 $2 $0 0 300 600700 Quantity per day 10. Refer to the graph above. If this monopolist sets the price to maximize profit, it will earn economic profit a. $ 1600 per day. b. $2,400 per day c. $4,800 per day. $7,200 per day.Explanation / Answer
9> c> new firms will enter.
Reason
At the lowest average cost, the firms can have a profit from the sale, thus new firms will enter in the market.
10> At MC=MR, 600 outputs are produced. Thus, 600x(16-12)=2400 is the profit.
So, b is the correct option.
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