Problem Regarding to Contestable Markets

Even though the concentration ratio for an oligopoly is close to hundred, firms may operate rather efficiently when the market: (1) price conforms to a limit pricing model. (2) is contestable since entry and exit are easy. (3) demand curve is unitarily elastic. (4) cannot be entered by new firms due to government regulation. (5) is spread between many small buyers.

Can anybody suggest me the proper explanation for given problem regarding Economics generally?

View Complete Question

Related Questions in Microeconomics

Q : History of labor-Yellow Dog Contracts

The agreements not to join unions were once general needs for employment. Now outlawed, such are termed as: (1) Blacklist contracts. (2) Feather-bedding certificates. (3) Employment screens. (4) Exclusionary provisions. (5) Yellow dog contracts.

Q : Total utility of water in Paradox of

Clean drinking water is accessible at a much lower price than the costs of equal amounts of gold. This actuality is most reliable with the outcome that whenever a consumer is in equilibrium, then the: (i) Net utility of water is very higher than its marginal utility,

Q : Short run effects of income tax rate If

If this illustrated figure given Lorenz curves for distribution of income after taxes and transfers, the probably short run effects of 10 percent increases within both income tax rates and government transfer

Q : Problem on Complementary Goods From the

From the viewpoints of auto makers, the weakening of OPEC oil cartel in the year 1990s resulted in a/an: (1) Rise in demand for cars. (2) Reduction in demand for cars. (3) Rise in the supply of cars. (4) Reduction in supply of cars.

Q : Elucidate GNI per capita Elucidate GNI

Elucidate GNI per capita?

Q : Changes in market prices and conditions

The model of pure competitive is intended to produce insights within how: (w) asymmetric information influences the efficiency of exchange. (x) buyers and sellers negotiate to reach contracts for goods and services. (y) markets determine equitable dis

Q : Economic profit at profit-maximizing

HoloIMAGine has patented a holographic technology which makes 3-D photography obtainable to consumers. When HoloIMAGine produces its profit-maximizing output, this is demonstrated as: (w) operating in the long run. (x) realizing an economic profit equ

Discover Q & A

Leading Solution Library

Avail More Than 1454875 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1949769
Asked

3,689

Active Tutors

1454875

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment