Which Is Not a Characteristic of Oligopoly

question 41

Multiple Choice

Which is not a characteristic of oligopoly?

• A)Each firm faces a downward-sloping demand curve.
• B)Firms are profit-maximizers.
• C)The sales of one firm will not have a significant effect on other firms.
• D)There is more than one firm in the industry.
• E)Firms set prices.

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Definitions:

Output Effect

The change in total output resulting from adjusting the production of one good in response to price changes, while holding utility constant.

Fixed Proportions

A production process where inputs are used in strict, unchangeable ratios.

Substitution Effect

The change in consumption patterns due to a change in the relative prices of goods, leading consumers to substitute one good for another.

Demand Curve

A graph displaying the relationship between the price of something and the quantity demanded at those prices.