Pricing decisisons are interrelated in oligopoly

Assignment Help Macroeconomics
Reference no: EM1311237

Testifying at a price fixing trial involving Cargill Corp. and the market for chicken growth hormone, (in which the Cargill is one of only three firms worldwide), an executive for Perdue said: "It's an oligopoly. When one (firm) changes price, they all do...Usually within minutes."

Why is it not surprising to find that in an oligopoly which sells a basically undifferentiated product like chicken growth hormone all the firms change prices simultaneously, even if there is no explicit price fixing?

Reference no: EM1311237

Questions Cloud

Linear regression equation : Develop a linear regression equation for the given data and forecast how much money Robert will win if he spends $30.
Find the equivalent units for june for the first process : Assume that the company uses the weighted-average method. Find the equivalent units for June for the first process.
Evaluate the company''s unit product costs : Recomputed the company\'s unit product costs in accordance with your recommendations.
Computation of value of the bond : Computation of value of the bond and what will happen to the equilibrium term structure according to the Expectations Hypothesis
Pricing decisisons are interrelated in oligopoly : Why is it not surprising to find that in an oligopoly which sells a basically undifferentiated product like chicken growth hormone all the firms change prices simultaneously, even if there is no explicit price fixing?
Correlation in the population : A random sample of 15 paired observations has a correlation of -.46. Can we conclude that the correlation in the population is less than zero? Use the .05 significance level.
Manufacturing overhead cost be assigned to production : The company uses a job-order costing system. How would you recommend that manufacturing overhead cost be assigned to production? Be specific, and shoe computations.
The full annealing heat treatment : Describe the full annealing heat treatment for a plain carbon steel.
Explanation of social welfare under tariff : What is autarky price and quantity equilibrium for both home and foreign? What is the open trade price and volume under free trade.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Profit maximizing or cost minimizing

Find the optimal (profit maximizing or cost minimizing) output of each firm. Find the price that each firm charges at the when producing the optimal output.

  Macroeconomics fourth canadian edition

Answer the following questions as these general questions pertain to the specific issue selected.The questions that you will cover with respect to your choice of broad social issue in the paper are given.

  Changes in equilibrium price and quantity

Use diagram to describe how each of the following events affects the equilibrium price and quantity of pizza (draw a separate diagram for each event)

  Profit maximizing behavior of natural monopoly

Compute total revenue, marginal revenue, marginal cost, and average total cost of this natural monopoly. What is the profit maximizing output and price for this natural monopoly when the government does not regulate it?

  Derivation of marginal revenue function and inverse demand

Dr Leona Williams a well know Plastic Surgeon, has reputation for being one of best surgeons for reconstructive nose surgery. Dr Williams enjoys a rather substantial degree of market power in this market. She has estimated demand for her work to b..

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  How income may change savings behavior

How income may change savings behavior

  Shift in the ad curve

The rising stock market implies an increase in wealth, at least as measured on paper. If we assume that some of this increased wealth gets consumed, then the rising stock market fuels an increase in aggregate demand, and may contribute to an inflatio..

  Examining energy efficiency and economic efficiency

Engineers at national research laboratory built a prototype automobile which could be driven 180 miles on single gallon of unleaded gasoline. They estimated that in the mass production the care would cost 40k for each unit to build.

  Canadian economy

When the Bank of Canada sells the government bonds to a commercial bank, the commercial bank experiences a decline in reserves and in increase in bonds. Total assets are unchanged; this is just a portfolio switch between bonds and cash.

  Discussion-non price competition

Explain how advertising can be employed to allow Tots-R-Us to keep price average above cost without encouraging entry.

  Market imperfection associated with negative externalities

Essay on Market imperfection associated with negative externalities.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd