In order for a market to be classified as an oligopoly,
a. there must be fewer than 10 firms
b. the four largest firms must have 90 percent of the market
c. there must be fewer than 5 firms
d. the firms must be strategically interacting
e. the firms must be strategically independent
D
You might also like to view...
An increase in the number of nursing homes and community health centers and the expansion of home care has led to an increase in the demand for nurses. At the same time, improving opportunities for women in business have reduced the supply of nurses. Hospitals, the major employers of nurses, have resisted wage increases. The resulting situation could be described as
a. the cost disease of the service sector. b. a shortage of nurses. c. the problem of auxiliary restrictions. d. the wage floor problem.
If quantity demanded rises significantly following a moderate price cut, then demand is:
A. Elastic. B. Inelastic. C. Unitary elastic. D. Most likely elastic.
Product differentiation:
a. is carried out by both perfectly competitive and monopolistically competitive firms. b. is succesful if a firm faces a relatively inelastic demand curve. c. does not allow the firm to raise its price without losing all of its customers. d. cannot be accomplished through advertising or trivial product changes. e. if carried out successfully enables the firms to enjoy market power.
A tax system with little deadweight loss and a small administrative burden would be described as
a. equitable. b. communistic. c. capitalistic. d. efficient.