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:

Ideological

Pertaining to a system of ideas and ideals, especially one that forms the basis of economic or political theory and policy.

Contingent

Dependent on or conditioned by something else; not absolute or certain.

Racial Stereotypes

Preconceived and oversimplified ideas or images about the characteristics of members of a specific race, often used to justify prejudicial attitudes and discrimination.

Criminal Justice

The system of practices and institutions of governments directed at upholding social control, deterring and mitigating crime, and sanctioning violators with criminal penalties and rehabilitation efforts.