Which of the Following Statements About Oligopolies Is Not Correct

question 49

Multiple Choice

Which of the following statements about oligopolies is not correct?

• A)An oligopolistic market has only a few sellers.
• B)The actions of any one seller can have a large impact on the profits of all other sellers.
• C)Oligopolistic firms are interdependent in a way that competitive firms are not.
• D)Unlike monopolies and monopolistically competitive markets, oligopolies prices do not exceed their marginal costs.

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Definitions:

Incontestability Clause

A provision in an insurance policy that makes the policy non-contestable after it has been in force for a certain period, usually two years, except under certain conditions.

Arbitration Clause

A provision in a contract that requires disputes to be resolved through arbitration rather than court litigation.

Multiple Insurance Policies Clause

A provision in insurance that addresses coverage and claims handling when the insured has more than one policy covering the same risk.

Emancipation

The legal relinquishment by a child’s parents or guardian of the legal right to exercise control over the child. Usually, a child who moves out of the parents’ home and supports himself or herself is considered emancipated.