1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
julsineya [31]
3 years ago
12

Which is true of​ output-choice models of oligopoly​ behavior?

Business
1 answer:
andreyandreev [35.5K]3 years ago
4 0

Answer:

A. The Stackelberg, but not the Cournot, model can be constructed as a sequential game

Explanation:

What is Oligopoly

This is a form of market where a market or an industry is dominated by large sellers who exist in a small quantity. An oligopoly has it own market structure and it results from the different types of collusion that lead to increase in prices for consumers and reduced competition.

Oligopoly as a Game

It is said that the firms in an oligopolistic market are playing games against each other. This is explained in the fact that since they are large sellers in the same market, they exist as rival firms and they make use of guessing or inferrences to understand the strategies of one another and choose a best response as a competitor.

It is in the bid to understand this competition that the game theory is applid to Oligopoly and different types of models come into play

Sequential Games Vs Continous Games

The question is specifically asking for the Oligopoly behaviour model that can be constructed as a sequential game.

The Stackelberg Duopoly

This Oligopoly model is a modelof Games Theory that can be applied to understand Oligopolistic behavour.  This model is also known as the Stakelberg Competititon and it is imperfect competition model that is based on a non-competitive or a sequential game construction.

The Stackelberg model was developed by Heinrich Stackelberg in 1934 in a work called "Market Structure and Equilibrum" and as a model that is developed from different starting assumptions it represents a breaking point in the study of market structure.

In the Stackelberg Model game, let's assume there are two firms subject to the same demand and cost functions but selling homogeneous products. One of the two firms who is given the position of the leader has the advantage of being better known or has a better brand equity giving him abetter placement to decide which quantity of the homogeneous product to sell first.

The second firm who take s the position of teh follower is must therefore observe the actions of the first firm and decide on the quantity of the same product to produce.

The strength of the Stackelberg model therefore, is to use a backward induction method as obtainable in any sequential game to decide the production quantity of firm B

The Cournot model on the other haand is called a simultaneous model.

You might be interested in
You own a shoe store with a merchandise book value of $178,000. You conduct a physical inventory and find the value to be $169,0
lozanna [386]

Answer:

1.89%

Explanation:

The book value of the merchandise is  $178,000

Physical inventory reveals stock is worth $169,000

The shrinkage = $178,000 - $169,000

=$9000

As a percentage of sales, the shrinkage will be

=$9000/$476,000 x 100

=0.0189076 x 100

=1.89%

6 0
3 years ago
The kind of money used by a group or nation.
kotegsom [21]
The kind of money used by a group or nation is usually considered currency. Currency can be denominated in paper or coin money, but most currency today exists in bank balances throughout the world in non-physical (exists only on a computer or in a bank ledger) rather than in its physical form. 
5 0
3 years ago
Read 2 more answers
You’re a bright, female investment analyst about to give a major presentation to a group of bankers supporting a corporate acqui
Ivanshal [37]

Explanation:

In this case, the ideal is to reject a task that is not mandatory in your contract. The boss's attitude in this situation was somewhat sexist, as it reduced the professional skills of a female investment analyst to having to be liked and serving coffee to bankers, since the professional was there to make a great professional presentation.

These unprofessional attitudes can be combated with an assertive attitude, without the professional feeling cornered by the possibility of suffering reprisals, but it is by maintaining an ethical, professional attitude and imposing respect, that it is possible for such unethical acts to be combated and not accepted any more. formal work environment.

7 0
3 years ago
Sue, a secretary goes to the storeroom to get a box of paper for her department. This is a task she's performed without problem
just olya [345]

Answer:

B. Sue is entitled to Workers' Compensation even though her employer was not negligent.

Explanation:

Sue is performing her normal duties that is required by her being a secretary when she was injured. So the employer cannot be said to be negligent in allowing her carry paper for her unit.

She will not be able to sue for employer for her injuries.

However when an employee is injured they are entitled to Worker's compensation and paid time off work.

This is given to employees even when the employer is not negligent.

Sue can get the Worker's compensation for her back treatment.

7 0
3 years ago
At the end of the current year, Accounts Receivable has a balance of $590,000; Allowance for Doubtful Accounts has a debit balan
denpristay [2]

Answer and Explanation:

a. The computation of uncollectible accounts and Journal entry is shown below:-

Bad Debt expenses Dr, $6,650

($2,660,000 × 1 ÷ 4× 1%)

       To Allowance for doubtful accounts $6,650

(Being uncollectible accounts is recorded)

b. The computation of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense is shown below:-

Accounts receivable = $590,000

Allowance for Doubtful Accounts = (Sales of the year × 1 ÷ 4 × 1%) - Credit balance

= ($2,660,000 × 1 ÷ 4 × 1%) - $5,500

= $6,650 - $5,500

= $1,150

Bad debt expenses = Sales of the year × 1 ÷ 4 × 1%

= $2,660,000 × 1 ÷ 4 × 1%

= $6,650

c. The computation of net realizable value of accounts receivable is shown below:-

Net realizable value = Accounts receivable - Allowance for Doubtful Accounts

= $590,000 - $1,150

= $588,850

6 0
3 years ago
Other questions:
  • Of the approaches to pursuing international markets, developing a ________ involves the greatest commitment and risk. joint vent
    6·1 answer
  • An investor receives a 15% total return by purchasing a stock for $40 and selling it after one year with a 10% capital gain. How
    11·1 answer
  • At the luxury hotel in miami, florida, three hotel employees serve the needs of each guest. in every room, a guest can summon a
    15·1 answer
  • Grading at a site refers to
    15·1 answer
  • Supply is the amount needed.<br> O True<br> O False
    10·2 answers
  • Sovereign immunity:
    10·1 answer
  • Asset allocation refers to ________. A. the allocation of the investment portfolio across broad asset classes B. the analysis of
    7·2 answers
  • HELP ME PLEASE ILL GIVE CROWN PLEASE!!
    11·1 answer
  • A student is writing a research paper about the poetry of the Harlem Renaissance. Which style guidelines will the student most l
    7·1 answer
  • is creating a vision for the organization and guiding, training, coaching, and motivating others to work effectively to achieve
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!