Oligopoly Is the Only Market Structure in Which One Finds

question 18

Multiple Choice

Oligopoly is the only market structure in which one finds:

• A) barriers to entry.
• B) competing brand names.
• C) minimum average total cost pricing.
• D) advertising.
• E) firm interdependence.

---

Definitions:

Risk-Averse

A preference for guaranteed outcomes over gambles, even if the gamble might have a higher expected return due to the dislike of uncertainty.

Risk-Neutral

An attitude towards risk wherein the decision-maker is indifferent between different alternatives with the same expected return, disregarding the level of risk associated with each.

Risk-Loving

Describes individuals or entities that have a preference for taking on risk, often in anticipation of higher returns.

Expected Utility

A theory in economics that predicts the choices individuals will make by considering the risks and benefits of their options and selecting the one which offers the most utility.