Entry into an oligopoly is
a. possible for anyone
b. time consuming
c. relatively easy
d. impossible
e. relatively difficult
E
You might also like to view...
In which of the following situations would a person be best off in real terms?
a. Receiving a 10 percent increase in a nominal wage, with an 8 percent rate of inflation in the economy b. Receiving a 3 percent increase in a nominal wage, with a 0 percent rate of inflation in the economy c. Receiving a 4 percent increase in a nominal wage, with a 5 percent rate of inflation in the economy d. Receiving no increase in a nominal wage, with a 5 percent rate of deflation in the economy e. Receiving a 2 percent decrease in a nominal wage, with a 6 percent rate of deflation in the economy
A firm with market power
A. faces a downward-sloping demand curve. B. can increase price without losing all sales. C. is the only seller in a market. D. both a and b E. all of the above
Software companies have high fixed costs and low marginal costs. This means that if a software company sells its product in the global market
A. it will gain a large benefit from its fixed investment and generate higher profits. B. the country in which the software company is located will suffer losses because the price of the software will rise with the additional worldwide demand. C. the company will earn more money in the short run, but lose money in the long run as entry into other markets encourages more competition. D. it will lose money because the additional expense of selling in the global market will add a large amount to fixed costs and add very little to revenues.
Considering the spectrum of market structures and moving from pure competition to pure monopoly we can say that
A. entry barriers get lower but exit gets more difficult. B. entry gets harder and the number of firms dwindles. C. entry becomes harder but exit becomes easier. D. none of these.