Oligopoly Differs from Perfect Competition and Monopolistic Competition in That

question 194

Multiple Choice

Oligopoly differs from perfect competition and monopolistic competition in that

• A) barriers to entry are lower in oligopoly industries than they are in perfectly competitive and monopolistically competitive industries.
• B) demand and marginal revenue curves are more useful for analyzing oligopoly than they are for analyzing perfect competition and monopolistic competition.
• C) because oligopoly firms often react when other firms in their industry change their prices, it is difficult to know what the oligopolist's demand curve looks like.
• D) the concentration ratios of oligopoly industries are lower than they are for perfectly competitive and monopolistically competitive firms.

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Definitions:

Environmental Circumstances

The physical, social, and cultural settings or factors that surround and affect the life of an organism or community.

Anger

An intense emotional response often involving agitation and potentially aggressive behavior in reaction to perceived provocation or threats.

Behavior Genetics

The study of the role genes and the environment play in shaping behaviors.

Individual Differences

Variability among individuals in behavior, biology, and psychology that makes each person unique.