A(n) _____ is a market dominated by a few large producers of a homogeneous or differentiated product.
Oligopolies must consider the possible reaction of rivals to its own _____, _____ and _____ decisions.
What characteristics made the American auto industry into a differentiated oligopoly for nearly a century?
Entry barriers into the auto manufacturing industry/ Mergers to help gain economies of scale/ the mutual interdependence of each firms profitability/the strategic behavior of competitors
Barriers to entry exist for monopolies as well as oligopolies due to all of the following except:
Diseconomies of scale.
By changing their advertising and _____ strategies, firms competing in an oligopoly can affect profits and influence the profits of rivals.
Why would a firm deviate from a collusive outcome as resented in the payoff matrix?
To increase its profit
An _____ is present when the largest four firms in an industry control more than 40% or more of the market.
A situation where firms meet to fix prices, divide markets, or restrict competition is called:
Compared to monopolies, oligopolies:
May give the appearance of competition but are acting like monopolies.
Oligopolistic firms do what when they change their pricing strategies?
Affect profits and influence the profits of rival firms.