I need help aswering some economic questions??

Question

Question 1

Provide an example of a real-world industry or market that would be described by economists as an oligopoly market.

Question 2

Explain why collusion with rival firms (cooperative behavior) would provide a better outcome for an oligopolist than competition (Noncooperative behavior) and give a real world example.

Question 3

Discuss the role of advertising in product differentiation and the intent of advertising in altering the firm's demand curve.

thank you!!

Answer 1

1. OPEC(OIl Producing and exporting countries) - there are FEW dominators of the market, because these are the major countries that produce oil and they do make barriers for other sources to get in between them.. LIke,  the only oil, majority, buys from them...

2. Well, if collusion doesnt occur, then later on, when one lowers the price and the other starts lowering it too, the outcome could be price wars which would not be benefitial to the small sized firms in market as compared to the dominant price tagger..

3. well, without advertising, and firms letting the people know, they would make less money.. if there was no advertising, the people would actually have to pay more for the product as opposed to them not advertising.. Lower costs, more product sold, DEmand goes up..

Well, with the different kinds of advertising and goods, the producer sure does diffirentiate the product.. Have u ever seen commercial where one product gets compared to other?.. PRODUCT DIFFERENTIATION..