Oligopoly differs from perfect competition and monopolistic competition in that
A) barriers to entry are lower in oligopoly industries than they are in perfectly competitive and monopolistically competitive industries.
B) demand and marginal revenue curves are more useful for analyzing oligopoly than they are for analyzing perfect competition and monopolistic competition.
C) because oligopoly firms often react when other firms in their industry change their prices, it is difficult to know what the oligopolist's demand curve looks like.
D) the concentration ratios of oligopoly industries are lower than they are for perfectly competitive and monopolistically competitive industries.
Answer: C
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In order for an increase in aggregate demand to raise Real GDP and the price level, the aggregate supply curve must be ____________________. If an increase in aggregate demand raises the price level but leaves Real GDP unchanged, the aggregate supply curve must be _____________________
A) upward-sloping; vertical B) upward-sloping; horizontal C) downward sloping; vertical D) vertical; upward-sloping E) vertical; downward-sloping
In economics, items that are used to produce goods and services are known as
A. needs. B. resources. C. wants. D. outputs.
The supply curve does not:
A. represents producers' willingness and ability to sell. B. visually display the supply schedule. C. show the minimum price producers will accept for any given quantity. D. illustrate how consumers want to purchase goods and services.
An inducement to take a particular action is called
A) the marginal benefit. B) the marginal cost. C) opportunity cost. D) an incentive.