Answer to Question #52970 in Microeconomics for Yana
1. The key difference between oligopoly and other market structures is the interdependence among producers.
2. The demand curve faced by an oligopolistic producer depends on how rival firms react to its prices and policies.
3. Large oligopoly firms are often able to take advantage of significant economies of scale. As a result, they can often produce at a lower average total cost than can smaller firms.
4. A cartel is a group of firms that attempt to collude by coordinating price and output decisions.
5. In the kinked demand curve model of oligopoly, above the profit maximizing price demand is inelastic and below the profit maximizing price demand is elastic.
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