Question 1

Compare and contrast the four market models in terms of the profit-maximizing output level for each, the shut-down rule for each, the probability of long-run economic profits being earned, and their social desirability.

Accepted Answer

The answer of Compare and contrast the four market models...

Question 2

Because an oligopoly is characterized by

Accepted Answer

An oligopoly is characterized by a few large sellers who have some influence over the market price, as each seller's actions can impact the other sellers' profits. Therefore, choice A is the most accurate description of an oligopoly. Choice B describes a monopoly, choice C describes monopolistic competition, and choice D describes a differentiated oligopoly.

Quiz 9: Monopolistic Competition and Oligopoly

Compare and contrast the four market models in terms of the profit-maximizing output level for each, the shut-down rule for each, the probability of long-run economic profits being earned, and their social desirability.

Because an oligopoly is characterized by