An Oligopolist Differs from a Perfect Competitor in That

question 62

Multiple Choice

An oligopolist differs from a perfect competitor in that

• A)there is cutthroat competition in perfect competition but little competition in oligopoly because firms have significant market power.
• B)firms in an oligopoly do not produce homogeneous products while firms in perfect competition do.
• C)the market demand curve for a perfectly competitive industry is perfectly elastic but it is downward-sloping in an oligopolistic industry.
• D)there are no entry barriers in perfect competition but there are entry barriers in oligopoly.