An Oligopoly Is Characterized By

question 19

Multiple Choice

An oligopoly is characterized by:

• A) a relatively small number of firms
• B) either differentiated or undifferentiated products
• C) actions of any individual firm will affect sales of other firms in the industry
• D) a and b
• E) a,b,and c

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Definitions:

Factor Market

A factor market is a marketplace for the services of factors of production, such as labor, capital, and land, where these are bought and sold.

Circular Flow

An economic model depicting the continuous movement of money, goods and services, and factors of production between producers and consumers in the economy.

Household

An economic unit that consists of all individuals who occupy a housing unit, regardless of their relationship.

Business

Organized efforts by individuals or entities to produce, sell goods or provide services for profit.