- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 1. The Firm and Market Structures
- Subject 8. Oligopoly
CFA Practice Question
Equilibrium quantity in markets characterized by oligopoly is ______.
A. higher than in monopoly markets and higher than in perfectly competitive markets
B. higher than in monopoly markets and lower than in perfectly competitive markets
C. lower than in monopoly markets and higher than in perfectly competitive markets
Explanation: Prices are lower than in monopoly markets but higher than in perfectly competitive markets.
User Contributed Comments 3
| User | Comment |
|---|---|
| thanhb91 | I dont get it, the question ask for equilibrium quantity and explanation is for equilibrium price; these two will have opposite effect on the answer. |
| standaert | The explanation gives a different perspective for users to understand. It does not state opposite answer, @thanhb91. |
| BossMan | Price was not asked. Pls explain. |