Question

it is important to understand oligopoly markets because:a. although few real world markets are oligopolies, their existence raisesinteresting theoretical questions.b. oligopolies typically generate more deadweight loss than monopolies.c. oligopolies can generate a whole range of possible outcomes betweenmonopoly and perfect competition.d. one can predict the market outcome exactly just by knowing the number offirms in the market.

Answer 1

Understanding oligopoly is important because it can generate a range of market outcomes between monopoly and perfect competition. While few real-world markets are oligopolies, their existence raises interesting theoretical questions. Analyzing choices in oligopolistic firms involves considering competition versus collusion.

Step-by-step explanation:

Oligopoly is an important concept to understand because it has implications for various market outcomes. Oligopolies can generate a range of possible outcomes between a monopoly and perfect competition. While few real-world markets are oligopolies, their existence raises interesting theoretical questions. In addition, analyzing the choices of oligopolistic firms involves considering the pros and cons of competition versus collusion.