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An industry that is oligopolistic would be best characterized by:
Suggested Answer: B
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Choice 'b' is correct. Oligopoly market conditions are characterized by:
* Few firms in the market
* Significant barriers to entry
* Differentiated products
* Fixed (or semi fixed) prices
* Kinked demand curves
Choice 'a' is incorrect. This is an example of monopoly.
Choice 'c' is incorrect. Horizontal demand curves represent demand that is perfectly price elastic (buyers will only pay one price for any quantity of a product). This occurs in perfectly competitive markets.
Choice 'd' is incorrect. This is characteristic of perfect competition, as there are no barriers to entry ('size doesn't matter') in perfect competition.
29 comments · newest first
FL
Fletcher
7 months ago
Overall, B is solid. It captures the essence of oligopolistic markets.
RE
Remona
8 months ago
I feel like D is wrong. Economies of scale often exist in these markets.
LE
Leota
8 months ago
But C is interesting. Demand curves can be flat in oligopolies.
GL
Glennis
8 months ago
A seems right too. One firm dominating fits oligopoly.
GI
Gianna
8 months ago
I agree, B makes sense. Hard to enter means less competition.
AP
Apolonia
8 months ago
I think B is the best choice. Barriers to entry define oligopolies.
CA
Carissa
8 months ago
Totally agree with B, barriers are huge in these markets!
DI
Dierdre
9 months ago
Wait, D? That seems off for oligopolies.
MA
Mable
9 months ago
C makes sense, but I’m not sure about that one.
MO
Moon
9 months ago
I think A is also relevant, but not the main point.
LE
Leonida
9 months ago
I'll go with B. Gotta love those high barriers to entry - keeps the riff-raff out of my industry!
CH
Charlene
9 months ago
Haha, I bet the answer is B. Oligopolies are all about keeping the competition out, am I right?
AL
Alecia
9 months ago
Hmm, I'm not sure. D could work too - the lack of economies of scale can contribute to an oligopolistic market structure.
KA
Kallie
10 months ago
C seems like the best option to me. Horizontal demand curves for individual firms is a classic sign of an oligopoly.
KA
Katie
10 months ago
B is definitely a key feature of oligopolies.
FL
Florinda
10 months ago
I think B is the correct answer. Significant barriers to entry are a key characteristic of an oligopolistic industry.
RO
Rocco
10 months ago
Easy peasy! An oligopoly is characterized by high barriers to entry (B) and firms facing horizontal/flat demand curves (C). The other options don't really fit the definition of an oligopolistic market. I feel good about this one.
AN
Annabelle
11 months ago
I'm a bit confused on this one. Is an oligopoly the same as a monopoly? I know they both involve limited competition, but I'm not sure I fully understand the distinctions. Guess I'll have to think it through carefully.
DU
Dudley
11 months ago
Okay, I've got this. An oligopoly is defined by a small number of large firms that dominate the market. So B and C are the right answers - high barriers to entry and flat demand curves for individual firms in that type of market structure.
AR
Arlene
11 months ago
Hmm, this is a tricky one. I'm not totally sure about the differences between oligopolistic and monopolistic markets. I'll need to review my notes on market structures before attempting this.
VI
Vivan
11 months ago
I think the key here is to identify the characteristics of an oligopolistic market. B and C seem like the most relevant options, with high barriers to entry and flat demand curves for individual firms.
MI
Ming
6 months ago
A is more about monopolies, not oligopolies. B and C are spot on!
SE
Serita
7 months ago
But what about A? One firm selling a unique product?
AN
Anjelica
7 months ago
Definitely! Flat demand curves mean firms have some power.
JO
Joaquin
10 months ago
I agree, B and C really stand out. Barriers to entry are crucial.
DO
Domonique
12 months ago
I definitely remember discussing barriers to entry in class, so I’m leaning towards B, but I’m not 100% confident.
BA
Barbra
12 months ago
I recall that an oligopoly isn't just one firm, so A seems off. But I’m confused about the economies of scale part in D.
GA
Gayla
12 months ago
I'm not entirely sure, but I feel like I saw a question about demand curves in oligopolies before. Could it be C?
DU
Dustin
1 year ago
I think I remember that oligopolies have significant barriers to entry, so maybe B is the right choice?