(Answered) Firms charging an identical price will always be the case

Economics

Firms charging an identical price will always be the case in perfect competition since any firm that charges more than the going market price will sell nothing. In price-setting among oligopolists there is usually a bit of dispersion among the prices.

So if there is some dispersion of prices and service among a few oligopolists, how much is this price dispersion and what are the differences in service? Take a look at the companies providing domestic airline services in Canada and use this to describe the differences.

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M92191281
Price:- $20

Verified Expert

Priced at $40 Now at $20, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Business Economics

Imagine youve started a new pizza restaurantnbspit costs

Imagine you've started a new pizza restaurant. It costs you about $6 to produce a pizza. Last week you sold 500 pizzas for $12 each. This week you raised your price and sold 375 pizzas for $14 each. What price should yo ...

Arrows theorem that states there is no true fair method for

Arrow's Theorem that states there is no true fair method for voting. Do you agree or disagree with this statement? Why?

A certain device is used to determine the sex of an unborn

A certain device is used to determine the sex of an unborn baby, but the device is not very reliable. If the fetus is truly a boy, the device says BOY with probability 0:8 (but, mistakenly, GIRL with probability 0:2). If ...

Marketing firm specializes in assessments of local

Marketing firm specializes in assessments of local restaurants and have been asked to rate local restaurants. The restaurants are rated as good, fair, or poor. From the firm's rating system, 72% of the restaurants were r ...

What is the result of a price ceiling and why do some

What is the result of a price ceiling? And why do some consumers tend to favor price ceilings and others tend to oppose it?

Why was the federal reserve system set up with 12 regional

Why was the Federal Reserve System set up with 12 regional banks rather than one central bank as in other countries? Why was it made an independent quasi-governmental body and not a direct part of the federal government?

Uni-trax publishers allows its sales team to buy and sell

Uni-Trax Publishers allows its sales team to buy and sell shares that pay out $1 only if the sales in the future fall within a certain range. Suppose that, currently, shares for sales between 1,000 and 2,000 textbooks ar ...

Currently fringe benefits make up about 30 of us workers

Currently, fringe benefits make up about 30% of U.S. workers' total compensation. Suppose the U.S. government decides to tax fringe benefits as ordinary income. How might this affect the level of fringe benefits as a sha ...

Assume that a perfectly competitive firm has the following

Assume that a perfectly competitive firm has the following revenue and cost functions: TC= 5625 +5Q + 0.01Q^2 AVC=5 + 0.01Q MC=5 + 0.02Q TR=20Q A) What is the level of output that maximizes profits, if any? Compute profi ...

Why does a government undertakes expansionary fiscal

Why does a government undertakes expansionary fiscal policy? What are the problems of undertaking expansionary fiscal policy? When is fiscal policy more appropriate than monetary policy?

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Business Economics Expert