The Theory of Oligopoly Suggests That

question 77

Multiple Choice

The theory of oligopoly suggests that

• A)entry into the industry is an important force preventing the exploitation of market power by existing firms.
• B)oligopoly may be the best of the feasible alternative market structures when major scale economies exist.
• C)the tendency toward joint maximization of profits is greater for a large number of sellers than for a small number of sellers.
• D)game theory is interesting theory but not useful for real corporate managers.
• E)innovation is weak when there is no price competition.

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Definitions:

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A typical example or pattern of something; a model or a distinct set of concepts or thought patterns.

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