One of the Main Differences Between an Oligopoly and a Monopolistically

question 58

Multiple Choice

One of the main differences between an oligopoly and a monopolistically competitive firm is that a monopolistically competitive firm

• A) Faces a horizontal demand curve; an oligopoly does not.
• B) Is relatively independent; an oligopoly is interdependent.
• C) Has no market power; an oligopoly has some market power.
• D) Has high barriers to entry; an oligopoly does not.

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Definitions:

Product Innovations

The creation or significant improvement of goods or services that offer new or additional benefits to the customer.

Extrinsic Rewards

Benefits or incentives given to individuals by external factors or organizations, such as money, prizes, or recognition.

Creative Behaviour

The capability to come up with original and useful ideas, solutions, or approaches in various contexts.

External Environment

The factors or conditions outside an organization that affect its operations and performance, including political, economic, social, and technological aspects.