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? aLook to see if there are economic profits in the short run.bLook to see if there are barriers to entry.cLook to see if there are economies of scale.dLook to see if price is above marginal cost.

Market structure is determined on the basis of a few factors such as the type of the product, the…

Answered: You see that an industry has only a few…

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter10: Monopolistic Competition And Oligoply

Section: Chapter Questions

Problem 9SQ

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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?

Look to see if there are economic profits in the short run.

Look to see if there are barriers to entry.

Look to see if there are economies of scale.

Look to see if price is above marginal cost.

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