Which of the following correctly describes an oligopoly?
A: A single firm has all of the market power.
B: Several firms have market power and there is free entry and exit.
C: Several firms have market power and there are barriers to entry.
D: Several firms take the price as given and there is free entry and exit.
A: A single firm has all of the market power.
B: Several firms have market power and there is free entry and exit.
C: Several firms have market power and there are barriers to entry.
D: Several firms take the price as given and there is free entry and exit.
举一反三
- In perfect competition, ________. A: there are restrictions on entry into the market B: firms in the market have advantages over firms that plan to enter the market C: only firms know their competitors' prices D: there are many firms that sell identical products
- Which of the following characteristics is common to monopolistic competition and perfect competition? A: Firms produce identical products. B: Entry barriers into the industry are low. C: Each firm faces a downward-sloping demand curve. D: Firms take market prices as given.
- Which of the following statements is most accurate regarding the characteristics of a perfectly competitive market A: Firms" products are different. B: The competitors never earn economic profits. C: Barriers to entry into the market are nonexistent.
- Which of the following is not characteristic of a monopolistic competitive market ？ A: There are many heads out there. B: Something different. C: Long-term economic profit. D: Free Entry and exit.
- In monopolistically competitive markets, free entry and exit suggests that A: the market structure will eventually be characterized by perfect competition in the long run. B: all firms earn zero economic profits in the long run. C: some firms will be able to earn economic profits in the long run. D: some firms will be forced to incur economic losses in the long run.