Which of the Following Is a Difference Between an Oligopoly

question 245

Multiple Choice

Which of the following is a difference between an oligopoly with homogeneous products and a monopoly?

• A) The firms in an oligopoly with homogeneous products earn positive economic profits in the long run, while a monopoly earns zero economic profits in the long run.
• B) The firms in an oligopoly with homogeneous products face stiff competition from their rivals, while there is no competition in a monopoly.
• C) There are huge barriers to entry in an oligopoly with identical products, while there are no barriers to entry in a monopoly.
• D) The firms in an oligopoly with identical products charge a price higher than marginal cost in the long run, while a monopoly charges a price lower than marginal cost in the long run.

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Definitions:

Accelerating Expenses

Expenses that increase at a faster rate than usual, often leading to financial pressure on a business or project.

Economies of Scale

Businesses achieve cost benefits as a result of their operational size, where the cost for each produced unit diminishes as the size of operation expands.

Functional Lines

Divisions within an organization that are categorized based on specific functions or roles, such as marketing, finance, or operations.

Employee Performance

An assessment of how effectively an employee performs their job duties and responsibilities.