PRC-3 · Chapter 12 · Question 59 of 69
Which of the following is NOT a fundamental characteristic of an Oligopoly market structure?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) A massive, near-infinite number of small firms
Explanation
An oligopoly is specifically characterized by a few large, dominant firms controlling the market, not a massive number of small firms (which is perfect/monopolistic competition).
More Firm Theory MCQs
- Q61If oligopolistic firms successfully form a strict, secret cartel (collusion), the market outcome will closely resemble a monopoly, leading…
- Q62Because monopolies face zero competition, their management often becomes complacent, wasting money on unnecessary expenses and failing to…
- Q63When a firm generates exactly enough total revenue to cover all its explicit accounting costs PLUS the implicit opportunity costs of the…
- Q64In a perfect competition market structure, what does the individual firm's downward-sloping marginal revenue (MR) curve look like?
- Q65A monopolistic firm notes that if it lowers its price, rival firms will instantly copy the price cut. If it raises its price, rivals will…