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.

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Definitions:

Price Inelastic

Describing a situation where the demand for a product does not significantly change with a change in the product's price.

Price Elastic

A measure of how the quantity demanded of a product or service changes in response to a change in its price.

Sales Volume

The total quantity of goods or services sold within a specific period, often used as an indicator of business performance.

Price Inelastic

A characteristic of goods or services whose demand does not significantly change with changes in price, indicating that consumers are relatively unresponsive to price adjustments.