Solution for QID #1101: Firm A is in an industry which is an oligopoly. Firm A disco | StudyHelpMe

Firm A is in an industry which is an oligopoly. Firm A discovers a new technology that lowers its production costs below its competitors. If Firm A chooses to lower its prices will it gain an advantage over its competitors? Explain why or why not. 5 points7. What is a cartel? Why would a firm join a cartel? Why would they cheat in the cartel agreement once they joined? 5 points8. There are two gasoline stations, A and B, on the same street intersection. If station A uses a low price strategy and lowers its price by $.05 per gallon what will station B do? Will station A’s strategy increase its profits over time? Use game theory and the example in Exhibit 7 to answer. 5 pointsI NEED THESE THREE QUESTIONS TO BE ANSWERED IN FULL. EACH QUESTION SHOULD BE A PARAGRAPH OR TWO LONG. NEEDS TO BE FULLY EXPLAINED AND HAVE DETAIL TO ANSWER THE QUESTION RIGHT.