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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