Oligopoly Differs from Perfect Competition and Monopolistic Competition in That

question 5

Multiple Choice

Oligopoly differs from perfect competition and monopolistic competition in that

• A)barriers to entry are lower in oligopoly industries than they are in perfectly competitive and monopolistically competitive industries.
• B)demand and marginal revenue curves are more useful for analyzing oligopoly than they are for analyzing perfect competition and monopolistic competition.
• C)because oligopoly firms often react when other firms in their industry change their prices, it is difficult to know what the oligopolist's demand curve looks like.
• D)the concentration ratios of oligopoly industries are lower than they are for perfectly competitive and monopolistically competitive industries.

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Definitions:

Job-Order Costing System

An accounting system used to track the costs associated with producing specific jobs or batches, useful for customized orders.

Predetermined Overhead Rate

A rate used to apply manufacturing overhead to products or job orders, calculated in advance based on estimated costs.

Variable Manufacturing Overhead

These are manufacturing costs that vary in total directly and proportionately with changes in the production volume, such as indirect materials and utilities.

Direct Labor-Hours

The cumulative working hours of employees directly engaged in manufacturing activities.