Oligopoly Differs from Perfect Competition in That in Oligopoly

question 12

Multiple Choice

Oligopoly differs from perfect competition in that in oligopoly:

• A) There are few large firms.
• B) There is always freedom of entry and exit.
• C) Firms face an upward sloping demand curve.
• D) Abnormal profits can only be earned in the short term.

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Definitions:

Manufacturing Jobs

Refers to employment in industries that produce physical goods through the transformation of raw materials into finished products.

Service Sector

The segment of the economy that provides intangible goods such as healthcare, entertainment, and professional services, as opposed to manufacturing or agriculture.

Higher Productivity

An increase in the efficiency of production, characterized by a greater output of goods and services for the same amount of input.

Economy

The system of production, distribution, and consumption of goods and services in a particular geographic region or country.