Which of the following applies to both perfect competition and oligopoly without product differentiation?

Question

Quizplus · Accepted Answer

Both perfect competition and oligopoly without product differentiation require firms to produce at the minimum average cost and the price to be equal to the marginal cost. Therefore, both markets have the condition where P = MR = MC. The other options do not apply to both markets. Firms in perfect competition produce an identical product, while firms in oligopoly without product differentiation could produce a homogeneous or differentiated product. Moreover, perfect competition has a large number of firms, and barriers to entry are low, while in oligopoly without product differentiation, the number of firms is limited, and entry barriers could exist.

Which of the Following Applies to Both Perfect Competition and Oligopoly