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:

Authority

The power or right to give orders, make decisions, and enforce obedience.

Division of Labor

The assignment of different parts of a manufacturing process or task to different people in order to improve efficiency.

Mechanistic Management

A management approach characterized by a highly structured and formalized workplace, clear hierarchies, and rigid division of labor.

Customer Needs

Customer needs are the recognized desires or requirements that clients expect to be fulfilled by a product or service.