Flashcards
Oligopoly
Cards in this deck (5)
- 1P = MC = ...? MR = MC = ...?P = MC = Economic Efficiency
MR = MC = NO economic efficiency - 2For a monopoly, when AR > AC this means...The firm is making super-normal profit.
- 3For an oligopoly firm, their profits also depend on...Other firms.
- 4Why might an oligopoly act in self-interest as opposed to cooperating with other firms?Because their motive is profit and they cannot be certain that the other firms will make decisions that will increase or decrease their profits.
- 5For an oligopoly when: 1. Output effect > Price effect ... 2. Output effect < Price effect ...1. Raise production
2. Lower production