All of the Following Statements Are True About an Oligopolistic

Multiple Choice

All of the following statements are true about an oligopolistic competitive market situation except

A) the products can be differentiated or undifferentiated.
B) advertising that uses comparative (head-to-head) messages is the norm.
C) the purpose of advertising is to inform.
D) sellers try to avoid price competition, which can lead to price wars.
E) firms in these markets stay aware of a competitor's price cuts or increases and may follow suit.