Consider the Following Characteristics

question 276

Multiple Choice

Consider the following characteristics:
a.a market structure with barriers to entry
b.demand curves that are easily identified
c.firm cannot make zero profits in the long run
d.firm can reap long run profits.
The characteristics in the list above shared by an oligopolist and a monopolist are

• A)a, b, c, and d
• B)a, b, and d
• C)a, c, and d
• D)a and d

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Definitions:

First-Price Auctions

A type of auction in which the highest bid wins, and the winner pays the amount of their bid.

Highest Bid

The largest amount of money offered for a good or service in an auction.

Second-Highest Bidder

In auctions, the participant who places the second greatest bid, often relevant in contexts where the winner pays the price submitted by this bidder.

Second-Price Auction

A bidding process where the highest bidder wins but pays the price bid by the second-highest bidder.