The Potential for Maximizing Total Industry Profits Is Greater in Oligopolies

question 7

Multiple Choice

The potential for maximizing total industry profits is greater in oligopolies than in perfect competition because

• A)There are fewer firms and each is dependent on the actions of rivals.
• B)Firms in an oligopoly are more profitable.
• C)There are independent firms in an oligopoly.
• D)Perfectly competitive firms can easily cooperate to restrict supply.

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Definitions:

Special Property Right

A legal right granted to an individual or entity over an intangible asset, such as intellectual property or a trade secret.

Fungible Goods

Items that are interchangeable and indistinguishable from one another in terms of quality and characteristics, making them easily replaceable.

Bona Fide Purchaser

A person who purchases property in good faith without notice of any prior claims, liens, or encumbrances.

Buyer in the Ordinary Course of Business

A purchaser who buys goods in good faith, without notice that the sale violates the rights of another party, in the usual and regular course of the seller’s business.