Question

Which of the following statements is true for both monopolistically competitive and oligopolistic industries?

1 point (a) It is impossible for new firms to enter the industries

(b) Collusion and creation of cartels is common

(c) Producers cannot benefit from knowing other firms’ plans

(d) Firms have some degree of control over price​

Answer 1

Explanation:

it is impossbile for new forms to enter the industries

Answer 2

• Both monopolistically competitive and oligopolistic industries have some degree of control over price.
• Monopolistic competitive industries  have many firms which  offer similar products which are a close substitute but not a perfect substitute for each other. In a monopolistic competition a firm can have an effect on the price of is competitive firm.
• An oligopoly market consists of a small number of forms which are in our very close competition with each other.
• The decisions of the pricing policy of one company can have a significant effect on the other.