TRUE OR FALSE True/False
a. In an oligopoly industry there are very few sellers ______
b. A Cartel can be formed when the number of firms in the industry is very large ______
c. A firm is producing with excess capacity when the firm does not produce at the lowest ATC
______
d. In the price leadership model of oligopoly, the largest two firms make decisions for all the
firms in the industry ______
e. The Kinked Demand model of oligopoly explains why prices in contestable markets do not
change very often ______