In the model of an oligopoly with identical (homogeneous) products, what is the price likely to be?
What will be an ideal response?
In an oligopoly with identical products, firms engage in tough competition in trying to gain market share. As a result, the market outcome is the same as it would be in a perfectly competitive industry: price equals marginal cost. This competitiveness comes from the fact that any one firm can steal all of the market from the other by dropping price only slightly. This incentive to undercut other firms' prices leads all firms to drop their prices to marginal cost.
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Drexel Burnham Lambert pioneered the widespread issuance of
A) junk bonds. B) commercial paper. C) callable bonds. D) convertible bonds.
Dividend refers to
a. a corporation's regular payments to lenders. b. part of the revenue given to stockholders of a corporation. c. a lender's legal claim on the assets of a bankrupt corporation. d. a prepayment of a corporation's legal obligation.