Oligopolies Exist and Do Not Attract New Rivals Because

question 92

Multiple Choice

Oligopolies exist and do not attract new rivals because

• A)of competition.
• B)of barriers to entry.
• C)the firms keep profits and prices so low that no rivals are attracted.
• D)there can be no product differentiation.

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Definitions:

Artificially Low Price

A pricing strategy where goods or services are sold at a price below their market value, often to drive competitors out of the market or gain market share.

Elastic

Describes a situation where the quantity demanded or supplied of a good or service significantly changes in response to price changes.

Cartel's Product

The goods or services produced and sold by a cartel, which is an association of independent businesses organized to regulate production, pricing, and marketing of goods.

Price-leadership Model

A market strategy where one leading company sets the price for goods or services, and others in the industry follow suit.