In an Oligopoly, the Total Output Produced in the Market

question 509

Multiple Choice

In an oligopoly, the total output produced in the market is

• A)higher than the total output that would be produced if the market were a monopoly and higher than the total output that would be produced if the market were perfectly competitive.
• B)higher than the total output that would be produced if the market were a monopoly but lower than the total output that would be produced if the market were perfectly competitive.
• C)lower than the total output that would be produced if the market were a monopoly but higher than the total output that would be produced if the market were perfectly competitive.
• D)lower than the total output that would be produced if the market were a monopoly and lower than the total output that would be produced if the market were perfectly competitive.

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Definitions:

Own Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, ceteris paribus.

Cell Phones

Portable electronic devices that enable users to make voice calls, send text messages, and access various forms of digital media and internet services.

Pay Phone Industry

The business sector involved in providing public telephones that operate with the insertion of coins or by credit card payments.

Unitary Elastic

In economics, it describes a situation where a change in the price of a good or service results in a proportional change in the quantity demanded or supplied.