All of the Following Are Characteristics of an Oligopoly EXCEPT

question 109

Multiple Choice

All of the following are characteristics of an oligopoly EXCEPT

• A) diseconomies of scale over all ranges of output.
• B) small number of firms.
• C) high barriers to entry.
• D) interdependence.

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Definitions:

Total Revenue

The total amount of money a firm receives from sales of its products or services.

Perfectly Competitive

A market structure characterized by a large number of small firms, homogeneous products, free entry and exit, and perfect information, leading to an efficient allocation of resources.

Market Price

The ongoing price for acquiring or disposing of goods or services in a market setting.

Profit-Maximizing

The process or strategy employed by firms to determine the level of output and pricing that leads to the highest possible profits.