What are the two distinguishing characteristics of oligopoly? ...

[Diane]

What are the two distinguishing characteristics of oligopoly?
 
  What will be an ideal response?

Question 2

Assume that both the demand curve and the supply curve for MP3 players shift to the right but the demand curve shifts more than the supply curve. As a result
 
  A) the equilibrium price of MP3 players will decrease; the equilibrium quantity may increase or decrease.
  B) the equilibrium price of MP3 players will increase; the equilibrium quantity may increase or decrease.
  C) the equilibrium price of MP3 players may increase or decrease; the equilibrium quantity will increase.
  D) both the equilibrium price and quantity of MP3 players will increase.

[sultansheikh]

Answer to Question 1

Oligopoly has two distinguishing characteristics: Natural or legal barriers prevent the entry of new firms, and a small number of firms compete in the industry.

Answer to Question 2

D