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:

Demand for Curds

This refers to the desire and ability of consumers to purchase curds, a form of dairy product, at various prices over a given period.

Price of Curds

The cost at which curds are sold in the market, which can vary based on factors like quality, production method, and geographical location.

Price of Whey

The market cost for whey, a byproduct of cheese production, which is used in various food products and as an animal feed.

Income

Regular remuneration derived from employment or the engagement in investment ventures.