The figure given below shows the revenue and cost curves of a monopolistically competitive firm.Figure 12.4
MR: Marginal revenue curve
ATC: Average total cost curve
MC: Marginal cost curve
-The oligopoly market structure model is characterized by:
A)many firms in an industry producing differentiated products.
B)many firms in an industry producing identical products.
C)few firms in an industry with natural barriers to entry.
D)a single firm in an industry with barriers to entry.
E)many firms in an industry with barriers to entry.

Question

The figure given below shows the revenue and cost curves of a monopolistically competitive firm.Figure 12.4
  MR: Marginal revenue curve
ATC: Average total cost curve
MC: Marginal cost curve
-The oligopoly market structure model is characterized by:
A)many firms in an industry producing differentiated products. 
B)many firms in an industry producing identical products. 
C)few firms in an industry with natural barriers to entry. 
D)a single firm in an industry with barriers to entry. 
E)many firms in an industry with barriers to entry.

Quizplus · Accepted Answer

Oligopoly is characterized by a few firms in an industry, often with significant barriers to entry, which can include natural barriers like high start-up costs or legal barriers such as patents.

The Figure Given Below Shows the Revenue and Cost Curves