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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.

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He would would have a short term capital loss of $200 (10 shares at $20 each)

Short term losses are considered losses on assets that have been held for less than 1 year.

6 0
2 years ago
Refer to the following table to answer the following questions:
sineoko [7]

Answer:

Following are the answer to this question:

In question first, the answer is "Option d".

In question second, the answer is "Option e".

In question third, the answer is "Option e".

In question fourth, the answer is "Option e ".

In question fifth, the answer is "Option b".

Explanation:

Given values:

Checkable \ deposits =  \$ 400,000,000\\Currency = \$ 340,000,000\\Traveler's \ checks = \$ 4,000,000\\Money \ market \ mutual \ funds = \$ 50,000,000\\Small \ time \ deposits = \$ 6,000,000\\Savings \ deposits = \$ 850,000,000\\

Solution:

  • \text{M1= currency +checkable deposits + travellers check}

    = $400000000+$340000000+$4000000

    = $744000000

\bold{\text{M2 = M1 +money market mutual funds + small time deposit+ saving deposit}}

      =  $744000000 + $50000000+$6000000+$850000000

       = $1,650,000,000

  • Saving account deposits, which means its amount of money increased throughout the M2 portion regular savings account. So M2 will grow  
  • Its increase in the number of employees may not impact the balance sheet with banks, because each bank maintains its entire cash flow
  • For banks, loans are investments if they're lending money as a bank to people. So, it's on income statement asset side
3 0
3 years ago
There are two parties in any lease contract—the lessee and the lessor. To a lessor, a lease analysis involves a capital budgetin
inn [45]

Answer:

a, b

Explanation:

It is important to note that a lessor's goal is to make a profit, thus he would be more concerned about knowing what is the value realized after subtracting the lease payments from his income taxes and any maintenance expenses that must be incurred as per the lease agreement.

In order to be cost efficient, he might as well determine the net cash outlay of the lease agreement.

4 0
3 years ago
Sean is initially unsure about which laundry detergent brand to buy: Stainz-Out or Ocean Fresh. Thanks to advertising, he has le
svlad2 [7]

Answer:

Positive effect advertisement

Explanation:

Base on the scenario been described in the question, the effect of the Ocean fresh because of the positive effect advertisement. This so because he discovered that ocean fresh is more cheaper and has almost the same price with that of stainz-out.

We can define positive advertisement as some kind of marketing strategies which show the target population all the positive effects which one can receive due to any particular product or service

4 0
3 years ago
Suppose Joe is maximizing total utility within his budget constraint. If the price of the last pair of jeans purchased is $25 an
inessss [21]

Answer:

80 units

Explanation:

Given:

  • Price: $25 we have: 100 units
  • Price: $20, how many units to maximize the total utility

Let X is the number of units we need to find

As we know that, the law of equal-marginal utility a consumer spends his or her income among goods so that utilities receive from the amount spent is equal. So we use a simple rule of three:

$25    100 units of utility

$20      X

<=> 25X = 20*100

<=> X = 80 units

Hope it will find you well.

6 0
2 years ago
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