The Conclusion That Oligopoly Is Inefficient Relative to the Competitive

question 342

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:

Biologists

Scientists who study living organisms and their relationship to the environment, including their structure, function, growth, and evolution.

Mutation

A new gene or combination of genes.

Psychological Processes

Encompass the functions of the mind, including cognition, emotion, perception, and behavioral patterns, integral to understanding human behavior.

Nature

The inherent qualities or properties of something; often refers to the physical world and its phenomena not made by human beings.