Which of the Following Is an Example of an Oligopoly

question 64

Multiple Choice

Which of the following is an example of an oligopoly?

• A)Oil producers restrict global oil supply in order to prop up the price of oil.
• B)The automobile industry in the 1970s was dominated by four or five large firms.
• C)Taiwan spurs exports to developed countries by subsidizing certain popular industries.
• D)Mexico attempts to become self-sufficient by erecting trade barriers and developing domestic industry.
• E)Cotton farmers receive large amounts of subsidies from the U.S.government.

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Definitions:

AVC

Average Variable Cost, the per unit cost of variable inputs divided by the total output produced, indicating the variable cost for each unit of output.

ATC

Stands for Average Total Cost, which is the sum of all production costs divided by the quantity of output produced.

Short Run

A period in economics during which some factors of production are fixed, making it impossible for a business to change major production facilities.

Average Fixed Cost

The fixed costs of production divided by the quantity of output produced; it decreases as production increases.