In What Way Can an Oligopolistic Market Structure Be Beneficial

question 46

Multiple Choice

In what way can an oligopolistic market structure be beneficial to society?

• A)An oligopolistic market structure is most adaptive to today's rapid rate of technological change.
• B)Oligopolistic firms are able to exploit all existing economies of scale and operate at the minimum of long- run average costs,and thereby reduce the use of society's resources.
• C)An oligopolistic market structure is most conducive to non- competitive behaviour which leads to lower prices for consumers in the long run.
• D)Oligopolistic firms compete through advertising,which increases economic efficiency.
• E)Oligopolistic firms compete through innovation,which is a driving force of economic growth and increasing living standards.

---

Definitions:

Individual Behavior

Actions and conduct exhibited by a person, influenced by individual attitudes, personality traits, and perceptions.

Stock Options

Financial derivatives that give the holder the right, but not the obligation, to buy or sell shares of a company at a specified price within a set time frame.

Granting Stock

The process by which a company offers shares of its stock to employees as part of their compensation package or as a reward.

Exercise Option

The act of implementing the right to buy or sell an asset under the terms of an option contract.