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Oligopoly
Question | Answer |
---|---|
Name 6 characteristics of an oligopolistic market | Few sellers. Interdependence between firms. Product differentiation . Barriers to entry. Collusion occurs. Non price competition is more common. |
What kind of demand curve does an oligopolistic firm have? | Kinked |
Name 3 methods of collusion | Limit pricing. Output policy. Sales territories |
What is price leadership/ dominant firm model? | Where one firm sets prices and other firms accept it |
Name 5 objectives other than profit maximisation | Government intervention. Managers in control. Limit pricing. Satisfactory profit levels. Managers- increased sales. |
Who came up with the model of sales maximisation, and what did it state? | Will Baumol, stated that managers may pursue increased sales as they see it as being important to advancement |