Which Would Be a Qualification to the View That Oligopoly

question 87

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:

Aggregate Demand

The total demand for all goods and services within a country's economy at a given overall price level and in a given time period.

Aggregate Supply

The total supply of goods and services that firms in an economy plan to sell during a specific time period at various price levels.

Keynesian Range

A segment of the Keynesian theory where demand-pull inflation is unlikely to occur due to high levels of unemployment and underused resources.

Intermediate Range

The range within which all intermediate goods, price levels, and outputs are determined by a mix of supply and demand.