Which of the following is a characteristic of oligopoly but NOT perfect competition?
A)Advertising and sales promotion
B)Profit maximization according to the MR = MC rule
C)Firms are price takers rather than price makers
D)Horizontal demand and marginal revenue curves

Question

Quizplus · Accepted Answer

Advertising and sales promotion are commonly seen in oligopoly markets, where there are only a few firms that dominate the market. In perfect competition, firms cannot engage in such activities as they are price takers and have no control over the market price.

Which of the Following Is a Characteristic of Oligopoly but NOT