Which of the Following Is a Key Characteristic of an Oligopoly

question 38

Multiple Choice

Which of the following is a key characteristic of an oligopoly?

• A) The firms in an oligopoly are mutually interdependent.
• B) There are a small number of buyers in an oligopoly market.
• C) There are a large number of firms in an oligopoly market.
• D) Firms in an oligopoly market earn zero economic profit.
• E) There are no entry barriers in an oligopoly market.

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Definitions:

Xerox

A multinational corporation known for its document technology and digital print solutions, often used synonymously with photocopying.

IBM

A multinational technology and consulting company known for its hardware, software, and extensive range of computing services.

Synthetic Lease

A financing method allowing a company to lease an asset while keeping it off its balance sheet, ensuring both tax advantages and off-balance-sheet financing.

Operating Lease

A contract that allows for the use of an asset but does not convey rights of ownership of the asset.