Which of the Following Is a Characteristic of Oligopoly

question 119

Multiple Choice

Which of the following is a characteristic of oligopoly?

• A)Firms compete solely on the basis of price.
• B)The pricing policies of one firm have no impact on pricing policies of other firms.
• C)There are large numbers of significantly sized sellers.
• D)The industry usually has a low concentration ratio.
• E)Prices are usually above marginal costs.

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Definitions:

Increase in Demand

A situation where more consumers are willing to purchase a product at a given price, often due to changes in income, tastes, or the price of related goods.

Decrease in Demand

A decrease in demand refers to a fall in the quantity of a product that consumers are willing and able to purchase at various prices, typically leading to a downward shift in the demand curve.

Peanut-Growing South

Refers to regions in the Southern United States that are prominent in the cultivation and production of peanuts.

Major Hurricane

A hurricane classified as Category 3 or higher on the Saffir-Simpson scale, characterized by wind speeds of 111 mph or higher.