Larger size automatically improves efficiency.

A cartel attempts to increase profits in the industry by limiting the production of each member.

Only the governments in developing countries create oligopolies.

In the long run, all resources are fixed.

Price elasticity of demand is also known as the slope of the demand curve.

Oligopolists, like monopolists, can arise for similar reasons, such as economies of scale or government regulations.

When consumers have perfect information, they will spend a lot of time shopping at different stores and perusing newspaper and magazine articles to learn about the prices and qualities of products.

A brand new store, Billy’s Boards, opens and business takes off. We would expect:

In monopolistic competition, because of product differentiation the firm can make a profit in the long-run.

As competitors enter and provide substitutes, competition increases.