1. Which of the following statements about oligopolies is not correct? a. Unlike

ID: 2494975 • Letter: 1

Question

1. Which of the following statements about oligopolies is not correct?

a. Unlike monopolies and monopolistically competitive markets, oligopolies prices do not exceed their marginal revenues.

b. Oligopolistic firms are interdependent in a way that competitive firms are not.

c. An oligopolistic market has only a few sellers.

d. The actions of any one seller can have a large impact on the profits of all other sellers.

2. As the number of firms in an oligopoly market

decreases, the market approaches the competitive market outcome.

increases, the market approaches the competitive market outcome.

increases, the market approaches the monopoly outcome.

decreases, the price charged by firms likely decreases.

3. The more firms an oligopoly has,

the more likely the firms will charge a price close to the perfectly competitive price.

the higher the price of the product.

the farther the equilibrium quantity will be from the socially efficient quantity.

the more likely it is to earn monopoly profits.

decreases, the market approaches the competitive market outcome.

increases, the market approaches the competitive market outcome.

increases, the market approaches the monopoly outcome.

decreases, the price charged by firms likely decreases.

option a. is incorrect in the first question.

option d is incorrect in the second question as this does not appen in oligopoly.

option d is again incorrect in the third question as this is a wrong statement regarding oligopoly.

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