4 We can draw demand curves for firms in perfectly competitive and

4 we can draw demand curves for firms in perfectly

  • New York University
  • MICRO 15
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4) We can draw demand curves for firms in perfectly competitive and monopolistically competitiveindustries, but not for oligopoly firms. The reason for this isA) we can assume that the prices charged by perfectly competitive and monopolisticallycompetitive firms have no impact on rival firms. For oligopoly this assumption is unrealistic.B) perfectly competitive and monopolistically competitive firms sell standardized products.Oligopoly firms sell differentiated products.C) that perfectly competitive and monopolistically competitive firms are price takers. Oligopolyfirms are price makers.D) there are no barriers to entry in perfectly competitive and monopolistically competitiveindustries. There are high barriers to entry in oligopoly industries.Answer: A
4)
Diff: 3Page Ref: 460/460Topic: Characteristics of OligopolyLearning Outcome: Micro 16: Discuss the functions of cooperation, competition, and public policies inoligopoliesAACSB: Reflective Thinking5) When large firms in oligopoly markets cut their prices,
5)
Diff: 2Page Ref: 460/460Topic: Characteristics of OligopolyLearning Outcome: Micro 16: Discuss the functions of cooperation, competition, and public policies inoligopoliesAACSB: Reflective Thinking6) The fraction of an industryʹs sales that are accounted for by the largest firms is called
6)
Diff: 1Page Ref: 460/460Topic: Concentration RatioLearning Outcome: Micro 16: Discuss the functions of cooperation, competition, and public policies inoligopoliesAACSB: Reflective Thinking

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