The Theory of Oligopoly Provides Another Reason That Free Trade

question 63

Multiple Choice

The theory of oligopoly provides another reason that free trade can benefit all countries because

• A)increased competition leads to larger deadweight losses.
• B)As the number of firms within a given market increases,the price of the good decreases.
• C)As the number of firms within a given market increases,the profit of each firm increases.
• D)All of the above are correct.

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Definitions:

Example

Used to illustrate a specific case or instance that demonstrates a general rule, concept, or situation.

Displacement

In linguistics, the ability to talk about things that are not present in time or space. In psychology, it refers to the transfer of emotions from a particular target to another.

Language

A system of communication used by a particular community or country, consisting of written, spoken, or gestural symbols that are conventionally understood.

Noam Chomsky

An influential linguist, philosopher, cognitive scientist, historian, and social critic, known for his theory of generative grammar.