B. In oligopoly markets there are only a few sellers.

Principles of Economics 2e
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ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter7: Production, Costs, And Industry Structure
Section: Chapter Questions
Problem 11RQ: What is die difference between accounting and economic profit?
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85) What is one way in which monopolistic competition differs from oligopoly?

  •  A. All oligopoly firms eventually earn zero economic profits.
  •  B. In oligopoly markets there are only a few sellers.
  •  C. There are no barriers to entry in oligopolies
  •  D. Strategic interactions between firms are rarely evident in oligopolies 

84) Consider that the attached Figure 23 represents a monopolistically competitive firm. What does the level of output Qc represent?

  •  A. inefficient output
  •  B. profit-maximizing output
  •  C. efficient scale
  •  D. excess capacity output
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