LUCIA Hi Kenji what might be an example of a firm in the rea

LUCIA: Hi, Kenji, what might be an example of a firm in the \"real world\" that operates in a market that closely approximates an oligopoly market model? KENJI: If one knows the characteristics of this type of market, then it is easier to think of real-world cases. For example, an oligopoly market is characterized by a few dominate sellers. What else can you tell me about the characteristics of an oligopoly? LUCIA: In an oligopoly, the product being sold is a product. There are barriers to entry. Also, decision-making by firms is KENJI: Some examples of oligopoly markets include the tobacco and beer industries, the pharmaceutical industry, the cosmetics, and the passenger airline business, as well as the wholesale lumber and coal industries, all of which meet the characteristics of an oligopoly. LUCIA: Thanks, Kenji! I am a little confused about why oligopolies may come to exist. That is, how can a few firms come to dominate an industry? KENJI: Oligopolies came to exist for many reasons. One of the more common reasons oligopolies emerge is the significant economies of scale that exist in the production of their product. Recall that economies of scale require a firm to operate at a very large scale to minimize costs to remain price competitive. And given the level of demand for the product, there may only be a need for a few very large firms because each firm produces a large percentage of the total quantity demanded in the market.

Solution

I have divided the whole thing into three parts Lucia 1, 2, and 3. and have only given the relevant lines with the values to fill in bold. I have also given two similar words so please choose the closest option available to you. If any doubt please comment.

Lucia 1:

In an oligopoly products being sold are \"Homogenous/similar\".

There are \"high / various\" barriers to entry.

decision making by firms is collusive / dependant.

Lucia 2:

Although it is in the \"collective\" best interest of the firms to collude and behave as a monopoly,

it is an \"individual\" firms self-interest to cheat by lowering the price of the product.

Lucia 3:

The \"lesser / fewer\" the number of firms...

When products are more \"Homogenous\" ...

If the production costs are \"similar\" among firms in a cartel, their profit maximising output will be similar ...

When demand \"decreases/drops\" throughout the year it is \"very/highly\" difficult for an individual firm to determine whether changes...

When the amount of sales is \"increasing/rising\" but sales have \"lowered/decreased\" value cheating would have little value...