oligopoly

Question 1

number of businesses

Answer 1

few firms dominate the market

Question 2

nature of product

Answer 2

homogeneous

Question 3

market entry

Answer 3

entry into market is difficult due to various barriers such as the amount of capital outlay needed

Question 4

control over price

Answer 4

some control over price but not as much as monopolies (price makers to the extent where increase of price is limited due to competition)

Question 5

demand curve

Answer 5

demand curve is kinked indicating that firms often prefer non price competition

Question 6

profit

Answer 6

firms can make economic profit both in short and long run

Question 7

collusion

Answer 7

possible and often happens
firms get tired of competing and collude to achieve higher profits

Question 8

productive efficiency

Answer 8

inefficient : ac of production is high

Question 9

allocative efficiency

Answer 9

inefficient : produces lower quantity than what consumers ask

Question 10

decision making

Answer 10

due to mutual interdependence firms influence ecah others decision making