Oligopoly Is a Market Structure Characterized By

question 142

Multiple Choice

Oligopoly is a market structure characterized by:

• A) independence in decisionmaking.
• B) a horizontal demand curve.
• C) a small number of interdependent firms.
• D) relatively easy entry and exit.

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Definitions:

ATC Curve

Average Total Cost Curve, a graphical representation showing how the average cost of producing one unit of goods changes with the level of production.

Average Fixed Cost

Average Fixed Cost is the fixed expenses of a company divided by the number of units produced, decreasing as production increases.

Marginal Product

The extra output or benefit received from using one more unit of a variable input.

Average Variable Cost

The total variable costs of production divided by the quantity of output produced; it varies with the level of output.