Questions
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AP Economics-Hillebrand AP Microeconomics Sem 1 Exam 2025 - Requires Respondus LockDown Browser

Single choice

Which of the following best represents the most distinctive characteristic of an oligopoly?

Options
A.A market with many firms earning zero economic profits in the long run
B.A market with low barriers to entry
C.A market with a single firm that faces no competition
D.A market with many firms selling differentiated products
E.A market where a few firms have significant market share
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Step-by-Step Analysis
Consider the concept being tested: the defining feature of an oligopoly. Option 1 posits many firms earning zero economic profits in the long run. While that outcome can occur in some models of perfect competition, it is not distinctive of an oligopoly, wh......Login to view full explanation

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