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The mutual interdependence that characterizes oligopoly arises because:
 
A) the products of various firms are homogeneous.
B) the products of various firms are differentiated.
C) a small number of firms produce a large proportion of industry output.
D) the demand curves of firms are kinked at the prevailing price.

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Sixta Kovacek
Sixta KovacekLv2
9 Apr 2020

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Related questions

1. A monopoly market structure is characterized by

a. large number of firms, standardized products, easy entry and exit.

b. large number of firms, differentiated products, easy entry and exit.

C. small number of firms, standardized or differentiated products, difficult entry.

d. one firm, a unique product without close substitutes, and impossible entry.

e. one firm, differentiated product, impossible entry.

 

2. Which of the following is not a characteristic of monopolistic competition?

a. Differentiated products

b. A downward-sloping demand curve for individual firms

c. Firms that are price makers

d. Impeded entry into the industry

e. A large number of firms

 

3. One factor that distinguishes oligopoly from other market structures is

a. the ease of entry into the market.

b. the interdependence of firms.

c. the slope of the demand curve.

d. the degree of product differentiation.

e. the amount of advertising expenditures.

 

The product-variety externality arises in monopolistically competitive markets because:

a. firms produce with excess capacity.

b. firms try to differentiate their products.

c. firms would like to produce homogeneous products, but a large number of firms prohibit it.

d. entry and exit are restricted.

Monopolistic competition is characterized by:

a. a large number of firms selling differentiated products.

b. a perfectly elastic demand curve.

c. high barriers to entry.

d. a large number of firms selling identical products

e. a small number of firms selling differentiated products.

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