Covid19+Submission+Template.docx - Name Akash Parmar...

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NameAkash ParmarQuestion 1The Joint Decision Making is calledCollusion(in Oligopoly market Structure)In collusion, There are very few players exist in the market and they come together toinfluence the input and output of the product.Advantages of Collusion:1.Joint profitsBecause the firms are dependent on each other in oligopoly market, If they come together andjoin hands they can maximize the profits by joining the hands.2.Reduces UncertaintyBecause the Firms depends on each other for strategic decisions they can decide where tospend money and when there will be demand and how much to supply.Disadvantage of Collusion:1.Can lead to high prices for Consumers2.New firms can be discouraged from entering the market-The global shutdown, especially the initially lockdown in china sunk demand for fossil fuelsin early 2020.The Desired outcome of cutting the prices for the oil was to keep the prices highso that when the supply is lower they will get high prices.-The Benchmark went into negatives.-The oil prices collapsed to the historic low before the decision to reduce the supply. LaterOPEC agreed to reduce the supply from 9.7 million barrels a day. After that America opposed

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Term
Winter
Professor
Dr.Gajavilli
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