Which Would Be a Qualification to the View That Oligopoly

question 78

Multiple Choice

Which would be a qualification to the view that oligopoly is allocatively and productively inefficient?

• A) Less foreign competition has stimulated more price competition in oligopolies.
• B) Oligopolies are less technologically competitive, so they lose market share.
• C) Oligopolies may purposely keep prices below short-run profit-maximizing levels to bolster barriers to entry.
• D) The more collusive practices of oligopolies lead to more profit-sharing among firms in the industry.

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Definitions:

β

Beta; often refers to the standardized coefficient in regression analyses, indicating the weight or importance of a variable.

Null Hypothesis

A statement made for statistical testing that assumes no effect or no difference between groups or variables being studied.

Statistical Power

The probability that a test will correctly reject a false null hypothesis; a measure of a test's ability to detect an effect, if there is one.

Type II Error

The statistical mistake of failing to reject a false null hypothesis, also known as a false negative.