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What main features are found in oligopolies?
Assumptions of oligopoly
a) collusion not limited to price or output - possible to divide markets or limit entrants
b) collusion is most often illegal
c) Collusion often short-lived, as cheating is a strong incentive
d) Overt and tacit collusion
e) Price leader
a) Non-collusive outcome results often in price rigidity
b) Firms are heavily interdependent and reluctant to engage in head-on competition
c) Non-price competition may result in both new and better goods - or at least the marketing effort will increase perceived quality
Illustrate the income changes and consumption choice. Income Changes and Consumption Choice: This is of interest to see at how the consumer’s demand changes when we hold pri
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what are the various types of cost curves?
Problem: (a) Distinguish between fiscal and monetary policy, giving examples where appropriate. (b) Explain how fiscal and monetary policies might be used by a government
MONOPOLISTIC MARKET
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#quesExamine the expenditure trends over the last 40 years. What are the direction and magnitude of changes in spending in and between these various categories (with the exception
pooling in insurance
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