Tacit Collusion Is Relatively Easy for Oligopolists If

question 35

Multiple Choice

Tacit collusion is relatively easy for oligopolists if:

• A)they are producing many different products.
• B)there are only a few firms in the industry.
• C)they are selling their product to only a few large buyers.
• D)barriers to entry into the industry are low.

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Definitions:

Dividend Yield Ratio

A financial ratio that indicates how much a company pays out in dividends each year relative to its share price.

Cash Dividends

Payments made by a corporation to its shareholders from earnings, typically in the form of cash.

Market Price

The existing rate at which an asset or service is traded in the open market.

Return on Total Assets

A financial ratio that measures a company's ability to generate earnings from its assets, indicating the effectiveness of asset use.