An Oligopolist Differs from a Perfect Competitor in That

question 62

Multiple Choice

An oligopolist differs from a perfect competitor in that

• A)there is cutthroat competition in perfect competition but little competition in oligopoly because firms have significant market power.
• B)firms in an oligopoly do not produce homogeneous products while firms in perfect competition do.
• C)the market demand curve for a perfectly competitive industry is perfectly elastic but it is downward-sloping in an oligopolistic industry.
• D)there are no entry barriers in perfect competition but there are entry barriers in oligopoly.

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Definitions:

Principal

In law and finance, the amount of money originally invested or loaned, before interest.

Partner's Liability

The legal responsibility shared by partners in a partnership to cover the business's debts and obligations.

Avoid Obligations

Refers to actions or strategies individuals or entities use to legally evade fulfilling certain duties or responsibilities.

Liability Limitations

Provisions within a contract that seek to limit the amount of compensation one party can receive from another in the event of a breach or other liability.