Which of the Following Is NOT a Necessary Condition for Oligopoly

question 271

Multiple Choice

Which of the following is NOT a necessary condition for oligopoly?

• A) Barriers to entry
• B) Strategic dependence of firms
• C) Differentiated products
• D) Either a small number of firms or market dominance by a small number of firms

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Definitions:

Network Externalities

The effect that the number of users of a product or service has on the value of that product to others, often leading to increased utility as more people use it.

Patents

Legal documents granting exclusive rights to inventors for their creations, preventing others from making, using, or selling the invention for a certain period of time.

Marginal Revenue

The supplementary income produced through the sale of one extra product or service unit.

Total Revenue

The overall earnings from sales of goods or services prior to any expense deductions.