Oligopoly Is a Market Structure Characterized By

question 186

Multiple Choice

Oligopoly is a market structure characterized by:

• A) independence in decisionmaking.
• B) barriers to entry and exit.
• C) a horizontal demand curve.
• D) a large number of small firms.

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Definitions:

Social Exchange Theory

A theoretical perspective, based on the principle of reinforcement, that assumes that people will likely choose actions that maximize rewards and minimize costs.

Exchange Network

A social structure that consists of individuals or entities sharing resources and services through a system of transactions.

Group Polarization

In group decision making, the tendency for group members to shift their opinions toward a position that is similar to but more extreme than the positions they held prior to group discussion; both the risky shift and the cautious shift are instances of group polarization.

Risky Shift

In group decision making, the tendency for decisions made in groups after discussion to be riskier than decisions made by individual members prior to discussion.