How Does Oligopoly Differ from Perfect Competition and Monopolistic Competition

question 121

Multiple Choice

How does oligopoly differ from perfect competition and monopolistic competition?

• A) Barriers to entry are lower in oligopoly industries than they are in perfectly competitive and monopolistically competitive industries.
• B) Demand and marginal revenue curves are more useful for analysing oligopoly than they are for analysing perfect competition and monopolistic competition.
• C) Oligopoly firms often react when other firms in their industry change their prices, so it is difficult to know what the oligopolist's demand curve looks like.
• D) The concentration ratios of oligopoly industries are lower than they are for perfectly competitive and monopolistically competitive firms.

---

Definitions:

Neural Activity

The electrochemical operations within neurons and neural networks in the brain and nervous system.

Stimuli

External factors or changes in the environment that can elicit responses from organisms or systems.

Consciously Perceived

Being aware of or giving intentional attention to something through the senses.

Larger Animal Species

Animal species characterized by their greater physical size compared to others, which can influence their ecology, behavior, and conservation needs.