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 influence 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.
B
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Suppose that the quantity demanded for cars exceeds the quantity supplied of cars. We would expect that
A. the demand will decrease (demand will shift to the left to meet the supply. B. the price of cars will increase. C. the supply will increase (supply will shift to the right to meet the demand. D. the price of cars will decrease.
The law of diminishing marginal utility states that as additional units are consumed, satisfaction per unit will decline
a. True b. False Indicate whether the statement is true or false
The argument that each person should pay taxes according to how well the individual can shoulder the burden is called
a. the ability-to-pay principle. b. the equity principle. c. the benefits principle. d. regressive.
In the long run, current output will:
A. be above potential output. B. only equal potential output if unemployment is zero. C. equal potential output. D. be less than potential output.