Which of the following statements is TRUE?

I.	Oligopoly is a form of imperfect competition.
II.	Oligopoly firms produce only differentiated products.
III.	Unlike perfect competition, there are only a small number of firms in oligopoly markets.

I only

II and III

I and III

I, II, and III

In the cartel model

firms believe that price increases result in a very elastic demand, while price decreases result in an inelastic demand for their products.

each firm acts as a price taker.

one dominant firm takes the reactions of all other firms into account in its output and pricing decisions.

firms coordinate their decisions to act as a multiplant monopoly.

Answer rating: 100% (QA)

Answer 1 C I and III The correct option is C In Oligopoly by definitio... View the full answer