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Under What Conditions Does an Oligopoly Market Result in the Same

question 46

Essay

Under what conditions does an oligopoly market result in the same outcome as monopoly? What does this imply for the oligopoly's long-run profits?


Definitions:

Marginal Utility

The extra pleasure or benefit gained by consuming one more unit of a product or service.

Utilitarian

A normative ethical theory that posits the best action is the one that maximizes utility, generally defined as maximizing happiness and reducing suffering.

Diminishing

A concept referring to the point at which the level of profits or benefits gained is less than the amount of money or energy invested.

Leaky Bucket

A metaphor for the inefficiency in income redistribution, where some resources are wasted or lost during the transfer process from the affluent to the needy.

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