It Is Harder to Explain the Behavior of Firms in an Oligopoly

question 59

Multiple Choice

It is harder to explain the behavior of firms in an oligopoly than in other market structures because _____

• A)the firms act independently of each other in an oligopoly.
• B)firms base their decisions on what their rivals do.
• C)only differentiated products are produced by firms in an oligopoly.
• D)only homogeneous products are produced by firms in an oligopoly.
• E)the demand curve faced by a firm in an oligopoly can slope upward.

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Definitions:

Mcg

Microgram, a unit of mass equal to one millionth of a gram, often used in medicine to specify dosages of drugs and vitamins.

Microgram

A unit of mass equal to one millionth of a gram.

Milliliter

A unit of volume in the metric system, equal to one thousandth of a liter.

Discontinue

To stop using a product or halt a process or treatment, often on a permanent basis.