Explain the importance of mergers in oligopolistic markets

Assignment Help Macroeconomics

Reference no: EM13232810

1) (a) What is market concentration and how can you know whether a market is concentrated or not?

(b) What are the causes of market concentration?

2) Oligopolists are interdependent firms.

(a) What is mean by that? Explain "strategic behavior" and relate that to the "Kinked Demand" model of oligopoly.

(b) Explain the importance of mergers in oligopolistic markets. Is there much price competition in an oligopolistic market? Why or why not?

Reference no: EM13232810

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