Oligopoly: แบบฝึกหัด

A market has a 4-firm concentration ratio of \(85\%\). What does this value most likely indicate about the market structure?

In the kinked demand curve model of oligopoly, why is the demand curve more elastic for price increases than for price decreases?

In an oligopolistic market consisting of five firms, the annual sales revenues are as follows: Firm A (120m), Firm B (80m), Firm C (50m), Firm D (30m), and Firm E (20m).

If Firm B and Firm C undergo a horizontal merger, what is the new 3-firm concentration ratio (CR_3) for this market?

In an oligopolistic market, what is the most likely reason why firms engage in non-price competition, such as advertising or branding?

Explain the concept of interdependence in an oligopoly and how it relates to the use of a kinked demand curve diagram.

The market for domestic energy is dominated by five large firms. These firms are highly interdependent and often engage in non-price competition.

(a) Explain the term 'interdependence' in the context of an oligopoly.
(b) Describe how a kinked demand curve explains price stability in this market structure.
(c) Evaluate one advantage and one disadvantage of an oligopoly market for a consumer.