The Conclusion That Oligopoly Is Inefficient Relative to the Competitive

question 87

Multiple Choice

The conclusion that oligopoly is inefficient relative to the competitive ideal must be qualified because

• A) industry price leaders often select a price equal to marginal cost.
• B) over time oligopolistic industries may promote more rapid product development and greater improvement of production techniques than if they were purely competitive.
• C) increased output due to persuasive advertising may perfectly offset the restriction of output caused by monopoly power.
• D) many oligopolists sell their products in monopolistically competitive or even purely competitive industries.

---

Definitions:

Spanish Territories

Areas around the world that were once part of the Spanish Empire, including portions of the Americas, Africa, Asia, and Europe.

Legal Settlement

An agreement reached between parties in a lawsuit, typically involving the payment of compensation by one party in exchange for the other's discontinuation of legal proceedings.

Oath Of Allegiance

A formal pledge of loyalty to a country or institution, often required of public officials, military personnel, and new citizens.

Catholicism

A Christian denomination based on the teachings of the Bible and the tradition of the Apostles, characterized by the recognition of the Pope as the supreme head.