Monopolistic Competition and Oligopoly Are Similar in That Firms in Both

question 25

Multiple Choice

Monopolistic competition and oligopoly are similar in that firms in both markets

• A) face horizontal demand curves.
• B) do not earn profits in the long run.
• C) tend to charge higher prices than under perfect competition.
• D) find that advertising and other types of selling expenses are unnecessary.
• E) produce homogeneous products.

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Definitions:

Diffusion Of Responsibility

Occurs when a person fails to take responsibility for actions or for inaction because of the presence of other people who are seen to share the responsibility.

Altruism

Altruism is the principle or practice of concern for the welfare of others, often manifesting in selfless acts.

Milgram Experiment

A series of social psychology experiments conducted by Stanley Milgram, which measured the willingness of study participants to obey an authority figure who instructed them to perform acts conflicting with their personal conscience.

Roles

Roles refer to the expected behaviors, duties, and responsibilities associated with a particular social position or status within a group or society.