Describe models of oligopoly, Managerial Economics

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Question 1:

(a) Describe the argument that market entry erodes profits in the long run.
(b) Give some reasons and discuss possible strategies used for profits to persist even in the long run. Give examples.

Question 2:

Describe three models of oligopoly and discuss the strategic interactions among firms regarding either pricing or output decisions in each case. Use examples to illustrate your answer.


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