Which of the following statements about oligopolies is not correct?
a. There are only a few firms in the industry.
b. Each firm possesses some market power.
c. Oligopolistic firms are always large.
d. An important reason for the existence of oligopolies is the presence of economies of scale.
Ans: c. Oligopolistic firms are always large.
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Discretionary fiscal policy is defined as fiscal policy
A) left to the discretion of military authorities. B) initiated by an act of Congress. C) initiated by a Presidential proclamation. D) triggered by the state of the economy. E) with multiplier effects.
The Fed tried to reduce unemployment in the years following the recession of 2001 by:
A. reducing the growth rate of the money supply. B. increasing government spending on construction projects. C. keeping the Federal funds rate very low. D. raising the reserve requirement for banks.