-In Some Industries It Is Important for Each Firm to Predict

question 24

Multiple Choice

-In some industries it is important for each firm to predict how all the other firms will react to their decisions.

• A) This is not true for monopolistic competition because there are too many firms and no barriers to entry.
• B) This is not true of any industry with barriers to entry.
• C) This is not true for monopolistic competition because firms do not sell homogeneous goods.
• D) This is true for oligopoly because these firms sell a homogeneous good.