Oligopoly Differs from Perfect Competition and Monopolistic Competition in That

question 5

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 industries.

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Definitions:

DRH Schedule

Differential Reinforcement of High Rates of behavior schedule; a reinforcement schedule in which a higher rate of a specific behavior is reinforced, encouraging the behavior to occur more frequently.

Reinforcer

Any stimulus that increases the likelihood of a preceding behavior being repeated.

Primary Reinforcer

An innate reinforcing stimulus like nourishment or shelter, which does not require learning to be effective in enhancing behavior.

Conditioning

A process of behavior modification by which a subject comes to associate a desired behavior with a previously unrelated stimulus.