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Which of the Following Is a Difference Between an Oligopoly

Question 245

Multiple Choice

Which of the following is a difference between an oligopoly with homogeneous products and a monopoly?


A) The firms in an oligopoly with homogeneous products earn positive economic profits in the long run, while a monopoly earns zero economic profits in the long run.
B) The firms in an oligopoly with homogeneous products face stiff competition from their rivals, while there is no competition in a monopoly.
C) There are huge barriers to entry in an oligopoly with identical products, while there are no barriers to entry in a monopoly.
D) The firms in an oligopoly with identical products charge a price higher than marginal cost in the long run, while a monopoly charges a price lower than marginal cost in the long run.

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