Which of the following is a difference between an oligopoly with homogeneous products and an oligopoly with differentiated products?
A) There are a large number of sellers in an oligopoly with homogeneous products, while there are only a few sellers in an oligopoly with differentiated products.
B) Firms in an oligopoly with homogeneous products earn positive economic profits in equilibrium, while firms in an oligopoly with differentiated products earn zero economic profits in equilibrium.
C) There are huge barriers to entry in an oligopoly with homogeneous products, while there are no barriers to entry in an oligopoly with differentiated products.
D) Firms in an oligopoly with homogeneous products earn zero economic profits in equilibrium, while firms in an oligopoly with differentiated products earn positive economic profits in equilibrium.
Correct Answer:
Verified
Q70: Scenario: Two firms, Firm 1 and Firm
Q71: Scenario: Two firms, Firm 1 and Firm
Q72: Crisps and Smith's are the only two
Q73: OnWheels and Speedstar are the only two
Q74: Scenario: Two firms, Firm 1 and Firm
Q76: Collusion occurs when firms _.
A) charge a
Q77: Firms in an oligopoly often do not
Q78: Scenario: Two firms, Firm 1 and Firm
Q79: There are a few firms in the
Q80: If firms in an oligopoly industry producing
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents