One way in which monopolistic competition differs from oligopoly is that Question 4 options: 1) there are no barriers to entry in oligopolies. 2) in oligopoly markets there are only a few sellers. 3) all firms in an oligopoly eventually earn zero economic profits. 4) strategic interactions between firms are rare in oligopolies.
Added by Cesar T.
Step 1
Monopolistic competition is a market structure where many firms sell products that are similar but not identical, and there are low barriers to entry. Oligopoly, on the other hand, is a market structure characterized by a small number of firms that dominate the Show more…
Show all steps
Your feedback will help us improve your experience
Jennifer Stoner and 92 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
Which of the following statements about oligopolies is not correct? a. An oligopolistic market has only a few sellers. b. The actions of any one seller can have a large impact on the profits of all other sellers. c. Oligopolistic firms are interdependent in a way that competitive firms are not. d. Unlike monopolies and monopolistically competitive markets, oligopolies prices do not exceed their marginal revenues.
Jennifer S.
Which of the following statements about industries that are oligopolies is false? Select one. a. An oligopoly with two firms is called a duopoly. b. Firms in these industries may attempt to cooperate. c. The fact that there is more than one firm in an oligopoly means that there are no barriers to entry. d. Firms in these industries are interdependent.
Akash M.
A significant difference between a monopolistically competitive firm and a purely competitive firm is that the: 1) former does not seek to maximize profits. 2) latter recognizes that price must be reduced to sell more output. 3) former sells similar, although not identical, products. 4) former's demand curve is perfectly inelastic.
Himani S.
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Transcript
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD
