Which of the Following Is True of a Firm in an Oligopoly

question 20

Multiple Choice

Which of the following is true of a firm in an oligopoly market?

• A)Each firm faces a downward-sloping demand curve with a kink at the current price.
• B)Firms in oligopoly markets are very small relative to the market.
• C)Products in oligopoly markets could either be differentiated or homogeneous.
• D)The profit-maximizing output is determined by equating price and marginal cost.

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Definitions:

Public Good

A public good is a product that one individual can consume without reducing its availability to another individual and from which no one is excluded.

Rival Good

A type of good where one person's consumption of the good reduces the ability of another person to consume the same good.

Exclusive Good

A product or service that is available only to certain people or groups, often due to high price or scarcity.

Public Good

A good or service offered to every member of a society for free, either by public authorities or by a private organization or person, without seeking profit.