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Oligopoly industry

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Oligopoly industry

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(a) Briefly explain THREE (3) main barriers of entry to Oligopoly industry.                                                                                                                               (3 marks) (b) Discuss possible rival’s response to price changes under the kinked-       demand curve for oligopolists?                                                                     (4 marks)   (c) Explain why the demand curve is kinked under noncollusive oligopoly.    (2 marks)                                              (d) Assume five firms in industry A have following annual sales: 30, 25, 20, 15, and 10 percent of total industry sales. For industry B, the five firms market shares are 50, 25, 15, 5, and 5 percent.       (i)   Discuss the main difference between concentration ratio and Herfindahl-index              Measurements.                                                                                       (2 marks)       (ii)  Calculate and comment on the Herfindahl index for each industry.      (2 marks)                                            (e) Discuss the competitiveness of the following oligopolistic market structures in Malaysia:       (i)   Automobile industry (low-medium price segment)                                (2 marks)           (ii)  Laptop computer                                                                                     (2 marks)       (iii) Pay-TV service market                                                                            (2 marks)

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