[amp_mcq option1=”Too much importance to non-price competition” option2=”Price leadership” option3=”Horizontal demand curve” option4=”A small number of firms in the industry” correct=”option1″]<\/p>\n
The correct answer is: A. Too much importance to non-price competition<\/strong><\/p>\n Oligopoly is a market structure in which a small number of large firms dominate the market. These firms have a great deal of market power and can influence prices. They often engage in non-price competition, such as advertising and product differentiation, to try to gain an edge over their rivals.<\/p>\n Price leadership is a common practice in oligopolistic markets. In price leadership, one firm sets the price for the product, and the other firms follow suit. This can lead to stable prices, but it can also lead to higher prices for consumers.<\/p>\n A horizontal demand curve is a curve that shows that the demand for a product is the same for all firms in the market. This is because the firms in an oligopolistic market are so large that they can affect the market price of the product.<\/p>\n A small number of firms in the industry is a defining characteristic of oligopoly. This means that the firms in an oligopolistic market have a great deal of market power and can influence prices.<\/p>\n Too much importance to non-price competition is not a characteristic of oligopolistic industry. In fact, oligopolistic firms often engage in non-price competition, such as advertising and product differentiation, to try to gain an edge over their rivals.<\/p>\n","protected":false},"excerpt":{"rendered":" [amp_mcq option1=”Too much importance to non-price competition” option2=”Price leadership” option3=”Horizontal demand curve” option4=”A small number of firms in the industry” correct=”option1″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-46219","post","type-post","status-publish","format-standard","hentry","category-economics","no-featured-image-padding"],"yoast_head":"\n