You see that an industry has only a few major firms. How could you best determine that this market is an oligopoly rather than monopolistic competition? a Look to see if there are economic profits in the short run. b Look to see if there are barriers to entry. c Look to see if there are economies of scale. d Look to see if price is above marginal cost.
You see that an industry has only a few major firms. How could you best determine that this market is an oligopoly rather than monopolistic competition? a Look to see if there are economic profits in the short run. b Look to see if there are barriers to entry. c Look to see if there are economies of scale. d Look to see if price is above marginal cost.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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You see that an industry has only a few major firms. How could you best determine that this market is an oligopoly rather than monopolistic competition ?
a
Look to see if there are economic profits in the short run.
b
Look to see if there are barriers to entry.
c
Look to see if there are economies of scale.
d
Look to see if price is above marginal cost.
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