Ch 17 Questions for Review answers

Ch 17 Questions for Review answers -...

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Ch 17 Questions for Review answers 1. If a group of sellers could form a cartel, they would try to set quantity and price like a  monopolist. They would set quantity at the point where marginal revenue equals  marginal cost, and set price at the corresponding point on the demand curve. 2. Firms in an oligopoly produce a quantity of output that is greater than the level  produced by monopoly. They sell the product at a price that is lower than the  monopoly price. 3. Firms in an oligopoly produce a quantity of output that is less than the level produced  by a perfectly competitive market. They sell the product at a price that is greater than  the perfectly competitive price. 4. As the number of sellers in an oligopoly grows larger, an oligopolistic market looks  more and more like a competitive market. The price approaches marginal cost, and  the quantity produced approaches the socially efficient level. 5.
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This note was uploaded on 01/16/2012 for the course PSYCH 373 taught by Professor Marthafaircloth during the Spring '09 term at Campbell.

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Ch 17 Questions for Review answers -...

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