The Defining Characteristic of Oligopoly Is That Each Firm

question 5

Multiple Choice

The defining characteristic of oligopoly is that each firm

• A)produces the same output as its rivals
• B)acts independently of its rivals
• C)is mutually interdependent
• D)is atomistic
• E)advertises how its products are different from its rivals' products

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Definitions:

Outgroup Favoritism

The phenomenon where a person prefers and supports the members of a group they are not part of over their own group.

Social Identity

An individual's sense of who they are based on their group memberships, such as social, cultural, and occupational groups.

Ingroup Bias

The inclination to prefer individuals from one's own group rather than those from outside groups.

Hindsight Bias

A cognitive bias that causes people to overestimate their ability to predict events that have already happened.