In: Economics
Which of the following is a characteristic of oligopoly but NOT perfect competition?
| a. | Engages in advertising and sales promotion |
| b. | Profit maximization according to the MR=MC rule |
| c. | Firms are prtakers rather than price makers |
| d. | Horizontal demand curve and marginal revenue curve
The Tragedy of the Commons occurs because
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All of the other options are the characterstics of the perfect competition, the oligopoly firms exensively use the advertisement and the sales promotion to gain the market power in the economy.

When the private costs are exceed the social costs there is negative externality and when the social cost exceed the private cost there is positive goods. The public goods are the non rival and non excludable in consumption so when the public uses the public property they are only concerned with the private cost and private benefit and not on the social cost and the social benefit.
A tariff is generally imposed
on the imports of the country and the tariff makes an increase in
the price of the imported good.