Answer to Question #185002 in Macroeconomics for James

Question

QUESTION 29

If oligopolies could sustain cooperation with each other on output and pricing:

1. They could rule the world.
2. They could earn profits as if they existed in a perfectly competitive market.
3. They could earn profits as if they existed in a monopolistically competitive market.
4. They could earn profits as if they were a single monopoly.
5. There would be no need for antitrust laws.

 

QUESTION 30

Oligopolies are often buffered by significant barriers to entry, which enable oligopolists to:

1. Advertise their products.
2. Earn sustained profits over short periods of time.
3. Earn sustained profits over long periods of time.
4. Earn substantial losses over short periods of time.
5. Behave in a way that is beneficial to society.

Answer 1

29. They could earn profits as if they were a single monopoly.

30. Earn sustained profits over long periods of time.