Which of the following is a characteristic of an oligopoly market?
a. Each firm in an oligopoly market can take independent pricing and output decisions.
b. There are many firms in an oligopoly market hence a firm cannot influence the market price.
c. In an oligopoly market, each firm's pricing and output decisions depend on those of its rivals.
d. Firms in an oligopoly market always manufacture differentiated products.
e. Barriers to entry does not exist in an oligopoly market.
c
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Why would an economist claim that "oil comes out of our minds"?
A) She wants to sound silly. B) She wants to tell lies. C) She wants to remind us that the recognition of useful resources is a product of our mental abilities. D) She wants to sound like a really big and important theorist and could not care less about the facts of the real world.
Suppose a price floor on sparkling wine is proposed by the Health Minister of the country of Vinyardia. What will be the likely effect on the market for sparkling wine in Vinyardia?
A) Quantity demanded will decrease, quantity supplied will increase, and a surplus will result. B) Quantity demanded will increase, quantity supplied will decrease, and a shortage will result. C) Quantity demanded will increase, quantity supplied will decrease, and a surplus will result. D) Quantity demanded will decrease, quantity supplied will increase, and a shortage will result.
A more stable political climate could benefit productivity just like a technological improvement could
Indicate whether the statement is true or false
If Fredonia has a closed economy, it ________ with other countries.
A. trades B. does not negotiate C. prevents its citizens from traveling to other countries but trades D. does not trade