8. Consider the following statements: I. Oligopoly is a form of imperfect competition. II. Oligopoly firms produce only differentiated products. III. Unlike perfectly competitive markets, oligopoly markets have only a small number of firms. IV. Oligopoly firms always set the price(s) higher than their marginal costs to earn positive profits. Which of the above statements are TRUE? (a) (II) and (IV) (b) (I) and (III) (c) (I) and (II) (d) (III) and (IV) Answer: Sh
8. Consider the following statements: I. Oligopoly is a form of imperfect competition. II. Oligopoly firms produce only differentiated products. III. Unlike perfectly competitive markets, oligopoly markets have only a small number of firms. IV. Oligopoly firms always set the price(s) higher than their marginal costs to earn positive profits. Which of the above statements are TRUE? (a) (II) and (IV) (b) (I) and (III) (c) (I) and (II) (d) (III) and (IV) Answer: Sh
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter17: Oligopoly
Section: Chapter Questions
Problem 9PA
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![8. Consider the following statements:
I. Oligopoly is a form of imperfect competition.
II. Oligopoly firms produce only differentiated products.
III. Unlike perfectly competitive markets, oligopoly markets have only a small number of firms.
IV. Oligopoly firms always set the price(s) higher than their marginal costs to earn positive profits.
Which of the above statements are TRUE?
(a) (II) and (IV)
(b) (I) and (III)
(c) (I) and (II)
(d) (III) and (IV)
Answer: 8b.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe6c941f2-7668-48c8-b882-82ea487ac519%2F308ef2b9-2906-4bc9-9fd1-38d98a2a9c7b%2Fchxa7p_processed.jpeg&w=3840&q=75)
Transcribed Image Text:8. Consider the following statements:
I. Oligopoly is a form of imperfect competition.
II. Oligopoly firms produce only differentiated products.
III. Unlike perfectly competitive markets, oligopoly markets have only a small number of firms.
IV. Oligopoly firms always set the price(s) higher than their marginal costs to earn positive profits.
Which of the above statements are TRUE?
(a) (II) and (IV)
(b) (I) and (III)
(c) (I) and (II)
(d) (III) and (IV)
Answer: 8b.
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