As the Number of Firms in an Oligopoly Decreases

question 151

Multiple Choice

As the number of firms in an oligopoly decreases:

• A)barriers to entry are likely to shrink.
• B)firms are less likely to engage in tacit collusion.
• C)firms are more likely to engage in tacit collusion.
• D)it becomes more difficult for the oligopoly to restrict output.

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Definitions:

Value Chain

A model that describes the full range of activities needed to create a product or service, from conception to delivery.

Human Resource Management

involves recruiting, hiring, deploying, and managing an organization's employees.

Value Chain

A series of activities that a firm operating in a specific industry performs in order to deliver a valuable product or service for the market.

Service Chain

The sequence of processes involved in the production and delivery of a service.