18. Oligopolistic industries are characterized by A. a few dominant firms and su

Question

18. Oligopolistic industries are characterized by A. a few dominant firms and substantial entry barriers B. a few dominant firms and no barriers to entry C a large number of firms and low entry barriers. D. a few dominant firms and low entry barriers. 19 Concentration ratios measure the: A. peogmphic location of the largest corporations in each industry degree to which product price exceeds marginal cost in various industries. percentage of toiel sales accounted for by the four largest firms in the industry. D. number of firms in an industry 20. The kinked-demand curve of an oligopolist is based on the assumption that: A. competitors will follow a price cut but ignore a price increase. B. competitors will match both price cuts and price increases. C. competitors will ignore a price cut but follow a price increase. D. there is no product differentiation. 21. Refer to the diagram below. Equilibrium output is:

Explanation / Answer

Ans)

18.
A. a few dominant firms and substancial barriers to entry.
Oliopolies have substancial barriers to entry.

19.
c. percentages of total sales accounted for by the four largest firms in the industry.
Concentration ratios are used to measure the degree of concentration of sales in a market.

20.
A. competitors will follow a price cut but ignore a price increase.
The kink implies that the competitors ignore a price increase.

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