The Sweezy model of oligopoly reveals that: A) changes in marginal cost may not affect prices. B) all of the provided answers are correct. C) capacity constraints are not important in determining market performance. D) perfectly competitive prices can arise in markets with only a few firms.
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The kinked-demand curve model of oligopoly is useful in explaining Multiple Choice why oligopolistic prices might change infrequently. the process by which oligopolists merge with one another. why oligopolistic prices and outputs are extremely sensitive to changes in marginal cost.
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One key difference between an oligopoly market and a competitive market is that oligopolistic firms are price takers while competitive firms are not. Oligopolistic firms sell their product at a price equal to marginal cost while competitive firms do not. Oligopolistic firms can affect the profit of other firms in the market by the choices they make while firms in competitive markets do not affect each other by the choices they make. Oligopolistic firms sell completely unrelated products while competitive firms do not.
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Firms in this type of market structure have no influence over the market price. a. Perfect competition. b. Monopolistic competition. c. Oligopoly. d. Monopoly.
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