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.

---

Definitions:

Subtract

The mathematical process of deducting one number from another.

Correlated

Implies a statistical relationship where two variables move together in some predictable pattern.

Error Terms

Components of a statistical model that represent the difference between observed and predicted values.

Time

The ongoing and continuous sequence of events that occur in succession, from the past through the present to the future.