Asked by Widelyne Loiseau on Jun 04, 2024
Verified
Oligopolistic firms
A) pay close attention to the actions of their rival firms.
B) are so few in number that at least one firm has some control over price.
C) charge a price that is higher than its ATC.
D) All of the choices are true.
Oligopolistic Firms
are companies operating in a market structure characterized by a small number of firms controlling a large market share, leading to limited competition.
Rival Firms
Companies that compete against one another in the same market for consumers or resources.
ATC
Average Total Cost, which is the total cost of production divided by the total quantity produced, indicating the average cost per unit.
- Understand the defining characteristics of oligopolies and their economic implications.
- Analyze the impact of oligopolies on market competition and consumer prices.
Verified Answer
SS
Semiramis SophroniouJun 10, 2024
Final Answer :
D
Explanation :
All of the choices are true. Oligopolistic firms pay close attention to their rivals to stay competitive, they are so few in number that they have some control over price, and they often charge a price higher than their ATC because of their market power.
Learning Objectives
- Understand the defining characteristics of oligopolies and their economic implications.
- Analyze the impact of oligopolies on market competition and consumer prices.