One of the defining characteristics of an oligopoly is that:
A. one firm's behavior can affect the others' profits.
B. all firms act independently to create a monopoly outcome.
C. all firms act independently to create a perfectly competitive outcome.
D. None of these statements is true.
Answer: A
You might also like to view...
Which of the following does NOT describe the relationship between banks and small business during the 2000s (prior to the financial crisis)?
A) Banks typically applied fixed guidelines for granting loans, leaving little room for personal judgment. B) Fewer small businesses received loans as banks shifted their focus to mortgages. C) Many small businesses were receiving loans from regional and national banks. D) More banks became convinced that it would be profitable to loosen their loan guidelines to make more borrowers eligible to receive credit.
According to Gordon, all of the following are important ingredients in the recent U.S. housing bubble EXCEPT
A) low interest rates. B) saving glut. C) financial innovation. D) trade deficit.
International reserves are
a. foreign exchange held by governments only b. foreign exchange held by central banks only c. foreign exchange held by governments or central banks d. gold only e. various internationally acceptable assets
If a firm is unable to distinguish different customer groups
A) it will not use product differentiation. B) it will be unable to maximize profits. C) it will find the quantity to product indeterminate. D) it might use a product line extension.