How Does Oligopoly Differ from Perfect Competition and Monopolistic Competition

question 121

Multiple Choice

How does oligopoly differ from perfect competition and monopolistic competition?

• 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 analysing oligopoly than they are for analysing perfect competition and monopolistic competition.
• C)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:

Time-Driven Activity-Based Costing

An accounting method that assigns costs to products or services based on the actual amount of time it takes to produce them, using time as the main driver for cost.

Order Fulfillment Department

A section within an organization responsible for processing customer orders, ensuring they are picked, packed, shipped, and delivered efficiently.

Capacity Analysis

The method of calculating the production capability required by an organization to adapt to the fluctuating needs for its products.

Time-Driven Activity-Based Costing

A method of costing that assigns costs to products based on the estimated time required for activities and the cost of supplying those activities.