Which statement is the most accurate? When we talk about big business in the U.S
ID: 1225319 • Letter: W
Question
Which statement is the most accurate? When we talk about big business in the U.S., we're talking about oligopoly. All oligopolists are very large firms. Oligopolists produce at the minimum points of their average total cost curves. It is impossible to lose money under oligopoly. Which statement is true? The higher the concentration ratio, the higher the degree of oligopolization. The lower the concentration ratio, the higher the degree of oligopolization. The concentration ratio remains constant as the degree of oligopolization rises. There is no relationship between the concentration ratio and the degree of oligopolization. The kinked demand curve depicts cut-throat competition. cartels. collusive oligopoly. price leadership. Which statement is false? The kinked demand curve represents oligopoly with collusion. The kinked demand curve is associated with sticky prices. Administered prices occur more frequently under oligopoly than under other forms of competition. None of these statements are false. Using the above graph, this profit maximizing firm charges a price of OV. OW. OX.OZ.Explanation / Answer
(21) (B)
Oligopoly is a market structure which is dominated by a few very large firms.
(22) (A)
Higher concentration ratio indicates higher market concentration, and oligopoly.
(23) (A)
In kinked demand model, if one firm raises price, no rivals follow suit, but if one firm lowers price, all others follow suit.
(24) (A)
A kinked demand model is an oligopoly without collusion.
(25) (C)
Price is at the lower end of the kink.
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