Which of the Following Is a Difference Between Perfect Competition

question 71

Multiple Choice

Which of the following is a difference between perfect competition and an oligopoly?

• A)Firms in an oligopoly earn economic profit in the long run, whereas firms in a perfectly competitive market earn zero economic profit in the long run.
• B)Firms in an oligopoly charge a lower price than firms in a perfectly competitive market.
• C)Firms in an oligopoly face horizontal demand curves, whereas firms in a perfectly competitive market face downward-sloping demand curves.
• D)An oligopoly is characterized by low barriers to entry, whereas a perfectly competitive market is characterized by high barriers to entry.
• E)There are many firms in an oligopoly, whereas there are only a few firms in a perfectly competitive market.