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.

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Definitions:

Fear Arousal

A psychological response to a threat that increases alertness or anxiety, often studied in the context of behavior change interventions.

Attitude Change

A psychological process where an individual’s feelings, beliefs, or positions on an issue are modified through persuasion, education, or experience.

Moderate Level

A term used to describe a level of intensity, degree, or extent that is considered average or medium.

Factorial Design

An experimental strategy used to study the effects of two or more independent variables simultaneously, by varying each variable across all levels of the others.