Q1. A good example of an oligopoly market structure is the airline industry. There are not many airlines in the industry, which will influence the particular market price. The pricing that we are looking at is the lack of competition. How do you think the lack of competition will affect the market price?
Q2. Suppose a firm produces 50 units of output per month. The firm's average variable costs and average fixed costs per month are R200-00 and R500-00, respectively.