If an Oligopoly Market Is Contestable and New Firms Enter,the

question 74

Multiple Choice

If an oligopoly market is contestable and new firms enter,the

• A)Market power of the former oligopolists will be reduced.
• B)Number of firms in the industry will decrease.
• C)Former oligopolists will raise their prices.
• D)Profitability of the industry will increase.

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Definitions:

Id's Pleasure-Seeking Energies

The component of the human psyche in Freudian psychology associated with instinctual urges and drives for immediate gratification.

Psychosexual Stages

The childhood stages of development (oral, anal, phallic, latency, genital) during which, according to Freud, the id’s pleasure-seeking energies focus on distinct erogenous zones.

Archetypes

Fundamental, universal symbols or patterns that recur in myths, stories, and dreams, representing common human experiences.

Oedipus Complexes

The Oedipus complex is a concept in psychoanalytic theory referring to a child's feelings of desire for their opposite-sex parent and jealousy and rivalry with their same-sex parent.