Similarities-differences between monopolies and oligopolies
Problem: What are some similarities and differences between monopolies and oligopolies? How would you classify Microsoft? How would you classify the power industry in your area? Explain your reasoning.
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In a monopoly with a 50-50 chance of a demand curve of P=20-Q or P=40-Q and MC=Q, what is the profit maximizing price. Please show the steps to find either $5, 10, 15, or 20.
What are some similarities and differences between monopolies and oligopolies? How would you classify Microsoft? How would you classify the power industry in your area? Explain your reasoning.
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When a signal seller is confronted in a market by many small buyers, monopsony power enables the buyers to obtain lower prices than those that would prevail in a competitive markets.
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Problem: When will a monopolistic competitor go out of business? Also, how can monopolistic competitors maintain high prices?
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