The Analysis of Oligopolistic Behavior Is Difficult Because

question 169

Multiple Choice

The analysis of oligopolistic behavior is difficult because

• A)there are few real-world examples of oligopolies for economists to study.
• B)oligopolists make decisions independently of each other.
• C)firms in oligopolistic industries react to each other's behavior in many ways.
• D)economists have paid little attention to the topic in recent years and so have not yet applied to it the techniques of modern economic theory.

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Definitions:

Stimulation

The activity of promoting or encouraging a physical or biological response through external or internal factors.

All-or-none

A principle stating that the strength of a response of a nerve cell or muscle fiber is not dependent on the strength of the stimulus. If a stimulus is above a certain threshold, a nerve or muscle fiber will fire.

Acetylcholine Agonist

A substance that mimics the action of acetylcholine, a neurotransmitter involved in memory and muscle contraction.

Acetylcholine

A neurotransmitter involved in many functions, including muscle movement, heart rate, memory, and learning.