Which of the Following Is a Distinguishing Characteristic of Oligopoly

question 48

Multiple Choice

Which of the following is a distinguishing characteristic of oligopoly?

• A) Firms are free to enter and exit the industry.
• B) Natural or legal barriers prevent the entry of new firms.
• C) A large number of firms compete.
• D) No one firm's actions directly affect the actions of the other firms.

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Definitions:

General Equilibrium Prices

The set of prices for all goods and services in an economy at which supply and demand across all markets are in balance.

Recreational Activities

Activities undertaken for pleasure, leisure, and relaxation during free time.

Equilibrium Price

The price at which the quantity of goods supplied is equal to the quantity of goods demanded.

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a given price within a specific time period.