Which of the Following Statements Is Correct About Oligopoly Firms

question 99

Multiple Choice

Which of the following statements is correct about oligopoly firms?

• A)They typically achieve economic capacity.
• B)They may or may not charge a price higher than marginal cost.
• C)They maximize profits by equating marginal revenue and marginal cost.
• D)They operate in an intensely competitive atmosphere in which the market dictates price.
• E)They produce an output that puts them graphically on the rising portion of the AC curve.

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Definitions:

Suppliers

Businesses or individuals that provide goods or services to another entity under terms specified in a contract.

Factors of Production

The resources utilized in the production of goods and services, traditionally categorized into land, labor, and capital.

Circular-Flow Model

A model that illustrates the movement of resources and money between firms and households in an economy.

Capital

Wealth in the form of money or other assets owned or employed in business by an individual, firm, or country.