One key characteristic that is distinctive of an oligopoly market is that:
A. the demand curve facing each firm is downward sloping, with a marginal revenue curve that lies below the firm's demand curve.
B. the decisions of one seller often influences the price of products, the output, and the profits of rival firms.
C. there is only one firm that produces a product for which there are no good substitutes.
D. there are many sellers in the market and each is small relative to the total market.
Answer: B
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Productivity growth is important because: a. it is the only way an economy can increase GDP
b. a small decrease in productivity growth causes a large decline in GDP. c. a large increase in productivity growth causes a small decrease in GDP. d. it causes an increase in the quantity of all resources available to an economy. e. it ultimately increases a nation's standard of living.
Under the rational expectations hypothesis, which of the following is the most likely short-run effect of a move to expansionary monetary policy?
a. A higher general level of prices but no change in real output b. A higher general level of prices and an expansion in real output c. No change in the general level of prices and a reduction in real output d. No change in either the general level of prices or real output
According to Figure 5.4, how many slices of pizza will one pizzeria be willing to supply at a market price of $1.50 a slice?
(A) 2,000 (B) 300 (C) 200 (D) 100
Explain why the LDCs are unable to invest much in capital goods and human capital.
What will be an ideal response?