Which of the following statements is (are) correct? (x) One key difference between an oligopoly market and a competitive market is that oligopolistic firms sell their product at a price equal to marginal cost while competitive firms do not. (y) Oligopolists are aware that increases in the quantity of output they produce reduce the price of their product, and in this respect they are like monopolists. (z) An oligopolist is similar to a monopolistic competitor in that both have some market power because they both face downward-sloping demand curves. (x), (y) and (z) only (x) and (y) only (x) and (z) only (y) and (z) only (z) only
Which of the following statements is (are) correct? (x) One key difference between an oligopoly market and a competitive market is that oligopolistic firms sell their product at a price equal to marginal cost while competitive firms do not. (y) Oligopolists are aware that increases in the quantity of output they produce reduce the price of their product, and in this respect they are like monopolists. (z) An oligopolist is similar to a monopolistic competitor in that both have some market power because they both face downward-sloping demand curves. (x), (y) and (z) only (x) and (y) only (x) and (z) only (y) and (z) only (z) only
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter16: Monopolistic Competition
Section: Chapter Questions
Problem 4PA
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Question
-
Which of the following statements is (are) correct?
(x) One key difference between an oligopoly market and a competitive market is that oligopolistic firms sell
their product at a price equal to marginal cost while competitive firms do not.
-
(y) Oligopolists are aware that increases in the quantity of output they produce reduce the price of their
product, and in this respect they are like monopolists.
(z) An oligopolist is similar to a monopolistic competitor in that both have some market power because they both face downward-sloping demandcurves.
-
(x), (y) and (z) only
(x) and (y) only
(x) and (z) only
(y) and (z) only
(z) only
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