00:01
We're going to answer from question one.
00:02
So oligopolis typically feature a few dominant firms that control a significant share of the market, which leads to unique competitive dynamics.
00:14
Few dominant firms.
00:18
And the evaluation would include the barriers to entry.
00:29
So this is high, and often due to economies of scale, capital requirements, or regulatory hurdles.
00:39
Which limits the competition, and also interdependence.
00:46
So firms are highly aware of competitors ' actions, which leads to strategic decision -making.
00:54
And also price rigidity.
01:01
So prices tend to be stable because firms avoid price wars, and instead they may compete through non -price strategies like advertising and product differentiation.
01:17
And fourth is the innovation.
01:19
So this can be high due to the completion market share, but firms might also become complacent if they are secure in their market positions.
01:30
So this could be high.
01:36
Five, consumer choice.
01:43
So it may be limited due to fewer firms, but the existing firms may offer varied products to cover the market spectrum.
01:55
Okay, now we can do question two.
02:00
So we're going to focus on the low.
02:02
Long run average cost curve or lrac.
02:07
So lrac curve represents the lowest cost at which a farm can produce any given level of output in the long run where all inputs are variable variable.
02:28
A firm can produce and the okay so just a moment.
02:54
Okay, so it would look like a smile like that.
03:02
And this is l -r -a -c.
03:10
And the y -axis cost per unit.
03:15
The x -axis is the quantity.
03:19
Okay.
03:24
So this shows the economies of scale at lower production levels...