If You Are Considering Starting Your Own Business, a Key

question 4

Multiple Choice

If you are considering starting your own business, a key priority for you should be to

• A) learn the basics of business.
• B) incorporate your business.
• C) get a loan from your local bank.
• D) apply for a Small Business Administration loan.

Understand how different market structures (monopoly, duopoly, oligopoly) determine the pricing and output decisions of firms.

Assess the efficiency outcomes in different market scenarios using demand and cost curves.

Describe how game theory provides a framework for understanding strategic choices in competitive environments.

Identify the conditions under which firms in an oligopoly will choose to compete or collude.