What is the role played by the competitive fringe in the dominant firm model of oligopoly? Why

Question:

What is the role played by the competitive fringe in the dominant firm model of oligopoly? Why does an increase in the size of the fringe result in a reduction in the dominant firm's profit-maximizing price?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Microeconomics

ISBN: 978-0073375854

2nd edition

Authors: Douglas Bernheim, Michael Whinston

See More Books

Question Posted: Mar 17, 2016 05:03 AM

See More Questions

What is the role played by an ETFs authorized participants?
Why does an increase in NWC represent a cash outflow?
Why does an increase in the strike price of an option decrease the value of a call option and increase the value of a put option?
You kick a soccer ball, compressing it suddenly to 2/3 of its original volume. In the process, you do 410 J of work on the air (assumed to be an ideal gas) inside the ball. (a) What is the change in...
(a) What factors should the Hernandezes consider as they shop for long-term care protection? (b) Victor is still in his 40s. How does his age affecttheir decisions related to long-term care...
Find the derivative of the function. y = cossin(tan )
Explain communication flows and networks.
This problem asks you to evaluate a major increase in financial leverage on the part of Nova Products, Inc. The companys financial statements for 20152017 and specific questions are available for...
1 0 points ] Caba - 9 2 0 8 Corporation's sales budget for the first half of the year is as follows: Budgeted Sales January $ 1 1 0 , 0 0 0 February $ 2 0 0 , 0 0 0 March $ 2 0 0 , 0 0 0 April $ 2 5...
Maria sighed as she considered her new assignment. It had seemed like a great idea when Iris offered her the role, but now she wondered if she could get her arms around the complex process of getting...
Explain the difference between the Bertrand model of oligopoly and the Cournot model of oligopoly. In a homogeneous products oligopoly, what predictions do these models make about the equilibrium...
What is the difference between vertical product differentiation and horizontal product differentiation?
Draw the free-body diagram of the sphere of weight W resting between the smooth inclined planes. Explain the significance of each force on the diagram. Given: W = 10 lb 1 = 105 deg 2 = 45 deg B
In the exchange lemma for the scheduling problem, we say that the first event to finish a* in a given time period [i,j] is always part of the optimal solution for that same time period. To argue...
4 10 points Company's year-end is December 31. Calculate depreciation for each year of the machine's estimated useful life under each of the following methods: (Do not round intermediate...
3. The walls of an oven are made from steel sheets with insulating board between them of thermal conductivity 0.18 J m-1 s -1 C-1 . If the maximum internal temperature in the oven is 300C and the...
Egyptian Spa produces two different spa products: Relax and Refresh. The company uses three operations to manufacture the products: mixing, blending, and packaging. Because of the materials used,...
Part A At a given instant A has the motion shown in (Figure 1). Determine the acceleration of B at this instant. Express your answer in feet per second squared to three significant figures. Enter...
Which of the following statements is false? A. VM instances may be created based on available compute shapes. B. Block storage volumes can be added only to bare-metal machines. C. VM instances may...
Rowland Textile Inc. manufactures two products: sweatshirts and T-shirts. The manufacturing process involves two activities: cutting and sewing. Expected overhead costs and cost drivers are as...
How does the theory of market imperfections (internalization) explain FDI? q-1
Lori employs Max. She wants him to work hard rather than to loaf. She considers offering him a bonus or not giving him one. All else the same, Max prefers to loaf. If they choose actions...
Charity events often use silent auctions. A donated item, such as a date with a movie star, is put up for bid. (See www.ecorazzi.com/2008/02/22/ebay-and-oxfam-help-you-win-a-date-with-colin-firth for...
At the end of performances of his Broadway play Cyrano de Bergerac, Kevin Kline, who starred as Cyrano, the cavalier poet with a huge nose, auctioned his prosthetic proboscis, which he and his...
Only need help on 4B and 5. Exercise 9-21 Breakeven Planning; Profit Planning (LO 9-2, 9-3] Connelly Inc., a manufacturer of quality electric ice cream makers, has experienced a steady growth in...
A project with an initial cost of $32,000 is expected to provide cash flows of $12,900, $13,100, $16,200, and $10,700 over the next four years, respectively. If the required return is 8.1 percent,...
A company that is expecting to receive EUR 500,000 in 60 days is considering entering into an FX futures contract to lock an exchange rate to USD for the transaction. The FX rate on the contract is...

What is the role played by the competitive fringe in the dominant firm model of oligopoly? Why

Question:

Step by Step Answer:

In a dominant firm market one dominant firm splits the market w...View the full answer

Microeconomics

Students also viewed these Economics questions