Question 1
In an oligopolistic industry, which of the following is an example of a firm-created entry barrier?
◦ decreasing demand for the product
◦ LRAC curve negatively sloped over a large range of output
◦ large set-up costs
◦ price competition
◦ brand proliferation
Question 2
In a typical oligopolistic market, there are
◦ substantial barriers to entry and firms interact strategically with each other.
◦ no barriers to entry and firms sell homogeneous products.
◦ substantial entry barriers, and firms are too large to strategically interact with each other.
◦ no barriers to entry, but firms sell differentiated products.
◦ no barriers to entry and firms interact strategically with each other.