It Is Difficult to Talk Conclusively About the Allocation of Resources

question 16

Multiple Choice

It is difficult to talk conclusively about the allocation of resources in an oligopoly because:

• A) entry is impossible in oligopolies.
• B) both price and output can be higher in oligopolies than in perfect competition.
• C) the level of competition varies greatly in oligopolistic markets.
• D) non-price competition is rare in an oligopoly.

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Definitions:

Output Market

A marketplace in which finished goods and services are traded, involving businesses selling to consumers or other businesses.

Marginal Rate

The rate of change in a quantity or cost in response to a one-unit change in another variable.

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two goods, given a set of inputs.

Utility

In economics, it represents a measure of satisfaction or happiness that consumers derive from the consumption of goods and services.