If an Industry Evolves from Monopolistic Competition to Oligopoly, We

question 254

Multiple Choice

If an industry evolves from monopolistic competition to oligopoly, we would expect

• A) the four-firm concentration ratio to decrease.
• B) the four-firm concentration ratio to increase.
• C) the four-firm concentration ratio to remain the same.
• D) barriers to entry to weaken.

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Definitions:

Metaphysical

Pertaining to the philosophy or theory of reality that is beyond the physical or scientific understanding; dealing with the nature of existence and the universe.

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