Multiple Choice QuestionWhich statement is true about oligopolies?Multiple choice question.They produce only differentiated products.They may produce either standardized products or homogeneous products.They may produce homogeneous or differentiated products.They produce only heterogeneous products.
Question
Multiple Choice QuestionWhich statement is true about oligopolies?Multiple choice question.They produce only differentiated products.They may produce either standardized products or homogeneous products.They may produce homogeneous or differentiated products.They produce only heterogeneous products.
Solution
The correct answer is: They may produce homogeneous or differentiated products.
Oligopolies are market structures characterized by a few firms dominating the market. These firms may produce homogeneous products, which are identical and indistinguishable from each other, such as oil or steel. On the other hand, they may also produce differentiated products, which are similar but not identical, and can be distinguished from each other based on branding, quality, features, etc., such as cars or smartphones. Therefore, oligopolies may produce either homogeneous or differentiated products.
Similar Questions
Oligopoly is characterized by which of the following?Multiple select question.There are a few sellersEach firm is affected by the decision of its rivalsPrice and output are determined by the market There is a standardized or differentiated product
Which of the following is not a characteristic of an oligopoly?Multiple choice question.A few large producersExtensive entry barriersProducers who are price takersEither standardized or differentiated products
A standardized product will be produced by firms in which of the following market structures?Multiple choice question.Monopolistic competitionPure monopolyOligopolyPure competition
Multiple Choice QuestionWhich of the following exists when a single firm is the sole producer of a product for which there are no close substitutes?Multiple choice question.Pure monopolyPrice takerDeregulated monopolyOligopoly
Multiple Choice QuestionDemand for monopolistically competitive firms is Blank______.Multiple choice question.more inelastic than demand for pure monopolies due to the presence of rival firmsmore elastic than demand for firms in pure competition due to product homogeneityless elastic than demand for pure monopolies due to competitors producing substitutable goodsless elastic than demand for firms in pure competition due to fewer rivals and relative product differentiation
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