The Potential for Maximizing Total Industry Profits Is Greater in Oligopolies

question 7

Multiple Choice

The potential for maximizing total industry profits is greater in oligopolies than in perfect competition because

• A)There are fewer firms and each is dependent on the actions of rivals.
• B)Firms in an oligopoly are more profitable.
• C)There are independent firms in an oligopoly.
• D)Perfectly competitive firms can easily cooperate to restrict supply.

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Definitions:

Carol Gilligan

An American feminist, ethicist, and psychologist best known for her work on ethical community and ethical relationships, and certain subject-object problems in ethics.

Moral Development

The process through which individuals develop proper attitudes and behaviors towards other people in society, based on social and cultural norms, rules, and laws.

Conscience

A gut feeling or internal speech perceived as directing someone towards what is morally correct or incorrect in their conduct.

Postconventional Morality

A stage in moral development characterized by an understanding that laws and rules are relative and moral reasoning is based on abstract principles and the welfare of others.