Which of the above statements are TRUE about OLIGOPOLY markets ? (a) They are all true (b) All except 1 are true (c) All except 3 and 7 are true (d) All except 1 and 3 are true 1. In the long-run, economic profits or losses will be eliminated throughfirms entering or leaving the industry.2. Unless their market positions are very secure, firms will practice "limitpricing" to forestall other firms entering the industry.3. Static efficiency is assured in the long run in this market.4. The actions of one seller in the market significantly impacts other sellers.5. Firms often exhibit "price leadership" behavior where one firms sets aprice with all other firms matching the price.6. Firms often compete vigorously on every aspect of the marketing mix(price, product, promotion, distribution) EXCEPT price.7. This market structure is likely to be conducive to dynamic efficiency.

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Answered: 1. In the long-run, economic profits or…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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		(a) They are all true
		(b) All except 1 are true
		(c) All except 3 and 7 are true
		(d) All except 1 and 3 are true