Oligopolistic firms are able to influence price only if the

Oligopolistic firms are able to influence price only if the oligopolist\'s products are standardized. unable to influence price regardless of whether or not the product is differentiated or standardized. OC able to influence price regardless of whether or not the product is differentiated or standardized by virtue of their size. able to influence price only if the oligopolist\'s products are differentiated.

Solution

1. The correct answer is: C)

Reason: An oligopoly market is characterized by a few sellers and large number of buyers and each firm has some market power. Thus, the firms in a oligopoly market can influence the price regardless of whether or not the product is differentiated or standardized.

2. The correct answer is: C)

Reason: Both the first two statements are false.

Imperfect competition results in inefficiency due to higher prices and lower output and thus is associated with lower equity.

A firm can\'t sell all output at any price. If it wants to sell more output it has to lower its price.

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