To Determine If a Market Is an Oligopoly,we Need to Determine

question 195

Multiple Choice

To determine if a market is an oligopoly,we need to determine if

• A) the market's HHI is less than 900.
• B) there are many firms in the market.
• C) the firms are so few that they recognize their mutual interdependencies.
• D) the firms make identical or differentiated products.
• E) cartels are legal in their market.

---

Definitions:

Equilibrium Price

The cost at which the amount of a product that buyers want to purchase matches the amount sellers are willing to offer, leading to a balanced market situation.

Labor Market

The market in which individuals offer their labor to employers in exchange for wages, showing the relationship between the supply of labor and the demand for it.

Marginal Product

The additional output that is produced by employing one more unit of a factor of production, keeping all other inputs constant.

Fourth Worker

In the context of diminishing returns, it could refer to a point where adding an additional worker leads to a lesser increase in output.