The Theory of Oligopoly Suggests That

Multiple Choice

The theory of oligopoly suggests that

A) entry into the industry is an important force preventing the exploitation of market power by existing firms.
B) oligopoly may be the best of the feasible alternative market structures when major scale economies exist.
C) the tendency toward joint maximization of profits is greater for a large number of sellers than for a small number of sellers.
D) game theory is interesting theory but not useful for real corporate managers.
E) innovation is weak when there is no price competition.