A Firm in an Oligopoly Is Similar to a Monopoly

question 46

Multiple Choice

A firm in an oligopoly is similar to a monopoly in that

• A) both firms do not face competition from others.
• B) both firms could have significant market power and control over price.
• C) both firms face very inelastic demand for their products.
• D) both firms do not need to advertise.

---

Definitions:

University City

An urban area typically dominated by its university population, often featuring a high density of academic, housing, and social infrastructure for students.

Incomes

Regular financial earnings from labor or investment activities.

Government Policies

Measures and laws enacted by a government to influence economic, social, or political issues.

Economic Principle

A basic concept or rule that underlines the functioning of an economy, guiding the analysis of economic behavior.