Which One of the Following Characteristics Applies to Oligopolistic Markets

question 102

Multiple Choice

Which one of the following characteristics applies to oligopolistic markets?

• A)There is free entry of rival firms.
• B)Firms are so large relative to the market that they do not have to consider the behaviour of rival firms.
• C)Firms are mutually independent because there are many firms in the industry.
• D)Firms have to consider the behaviour of their rivals since their rivals are also large relative to the size of the market as a whole.
• E)Economic profit of each firm equals zero.

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Definitions:

Full Employment

Full Employment is a condition where all available labor resources are being used in the most economically efficient way, with minimal unemployment.

Savings Exceeds Investment

Describes a situation in which the amount of income saved by individuals or entities surpasses the amount being invested, which can indicate caution or a lack of attractive investment opportunities.

Keynes

John Maynard Keynes was a British economist whose ideas, known as Keynesian economics, had a major impact on modern economic and political theory and on fiscal policies of governments.

Demand

The desire and ability of consumers to purchase goods or services at a given price.