One Key Characteristic That Is Distinctive of an Oligopoly Market

question 113

Multiple Choice

One key characteristic that is distinctive of an oligopoly market is that

• A) the demand curve facing each firm is downward sloping, with a marginal revenue curve that lies below the firm's demand curve.
• B) the decisions of one seller often influence the price of products, the output, and the profits of rival firms.
• C) there is only one firm that produces a product for which there are no good substitutes.
• D) there are many sellers in the market and each is small relative to the total market.

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Definitions:

Agency Relationship

An agency relationship is a legal arrangement in which one party, the agent, is authorized to act on behalf of another party, the principal, in business transactions.

Power Given As Security

Refers to a legal arrangement where authority or control over assets is given to someone as a form of security for a debt or obligation.

Agency Relationship

A legal relationship established when one party (the agent) is authorized to act on behalf of another (the principal) in business transactions.

Federal Statute

A law enacted by the legislative branch of the federal government of the United States.