Cutthroat competition, oligopoly and collective bargaining

Assignment Help Macroeconomics

Reference no: EM1370579

5) The American automobile industry has been an archetypical oligopoly. Show why this statement is true.

6) Describe the cutthroat competitors reasons for not raising or lowering his price, thereby accounting for the kink in his demand curve.
The cut-throat competitors' reason for not raising or lowering prices are that if a competitor increases his prices about the existing level, the other competitors will not follow and the firm that has increased the price will lose its market share to other competitors. On the other hand if the firm lowers its prices the competitors will also lower their prices to protect their market share and so the firm that has taken the initiative to reduce the price will only gain slightly by way of quantity sold. What happens in the kinked demand curve model is that the demand curve above the point of equilibrium is very elastic but the demand curve below the point of equilibrium is inelastic. The overall effect of the kinked demand curve is that prices remain rigid.
7) What are the basic provisions of a collective bargaining agreement? Explain the differences between meditation and arbitration.

Reference no: EM1370579

Questions Cloud

Explain what are the key issues facing saxonville sausage : Explain What are the key issues facing Saxonville Sausage Company when launched national Italian Sausage brand?

Phases of the business cycle : Determine the four phases of the business cycle? How long do business cycles last and how do seasonal variations and long-run trends complicate measurement of businrss cycle?

Program to determines and print all prime numbers : Use this function in program which determines and prints all prime numbers between 2 and 10,000. How many of these numbers do you actually have to test before being sure that you have found all primes?

Explain what aspects of the environment support : Explain What aspects of the environment support this structure and Are there any aspects of the internal or external environment that currently or in the near future push for changes in university structures?

Cutthroat competition, oligopoly and collective bargaining : Describe the cutthroat competitors reasons for not raising or lowering his price, thereby accounting for the kink in his demand curve.

Monopoly-its effect on society : There're many different kinds of monopolies which exist in the market. you're going to talk about the different kind of monopolies, their place in the market, and their effect on society. please describe the following:

Explain prudent policy to protect datafrom corruption-theft : The opposing require to protect this data (from corruption and theft) which typically means controlling access to much/all of the data? What policy is prudent here?

Define what leadership does to promote social responsibility : Explain what leadership does to promote social responsibility and how this ties to ethics and the organizational culture of the company.

Find the growth rate of total factor productivity : Assume labor's share of GDP is 70% and capital's is 30%, real GDP is growing at a rate of 4 percent a year, the labor force is growing at 2 percent, and the capital stock is growing at 3%.

User Account

All Pages