lab 9 - Econ 203 lab 9 Page 1 November 29-December 3, 2010...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Econ 203 lab 9 Page 1 November 29-December 3, 2010 Economics 203: Intermediate Microeconomics I Lab Exercise #9: Oligopoly and Monopolistic Competition Section 1: Test Your Understanding True or False? 1) In an oligopoly, any change in one firm’s price or output generally influences the sales or profits of its rivals. 2) Economies of scale may promote oligopoly. 3) The key characteristic of oligopoly is interdependence. 4) A cartel may act like a monopolist with a number of plants or divisions, each of which is a member firm. 5) The firm under monopolistic competition is likely to produce less than the firm under perfect competition. Section 2: Discussion: Explain how a firm’s output and price are determined under monopolistic competition in the: a) short run b) long-run Section 3: Application A lamp manufacturer has been trying to determine the optimal price for its product. The weekly demand for the firm’s product was estimated to be: Q D =− 2010 05 . P where Q D = Quantity and P =price.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 5

lab 9 - Econ 203 lab 9 Page 1 November 29-December 3, 2010...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online