The key characteristic of an oligopolistic market is:
A) production of a homogeneous product.
B) mutual interdependence among firms in the market.
C) the absence of market power by any one firm.
D) ease of entry into, and exit out of, the market.
B
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Which of the following describes the market structure of monopoly?
a. many firms with some control over price, and considerable product differentiation b. many firms with no control over price, producing identical products with no differentiation c. a few firms with some control over price, producing similar products which are close substitutes d. a few firms with no control over price, producing highly differentiated products e. a single firm producing all of the output for the industry
Which of the following is true?
a. Competition from abroad fails to provide domestic producers with a strong incentive to improve the quality of their products and keep their costs low. b. When economies of scale are important in an industry, international trade benefits domestic consumers but harms domestic producers. c. When economies of scale are important in an industry, international trade will be particularly important for domestic producers operating in small countries. d. Economies of scale eliminate the potential gains from international trade.