Oligopoly Differs from Perfect Competition and Monopolistic Competition in That

question 5

Multiple Choice

Oligopoly differs from perfect competition and monopolistic competition in that

• A)barriers to entry are lower in oligopoly industries than they are in perfectly competitive and monopolistically competitive industries.
• B)demand and marginal revenue curves are more useful for analyzing oligopoly than they are for analyzing perfect competition and monopolistic competition.
• C)because oligopoly firms often react when other firms in their industry change their prices, it is difficult to know what the oligopolist's demand curve looks like.
• D)the concentration ratios of oligopoly industries are lower than they are for perfectly competitive and monopolistically competitive industries.