If an Oligopolist Is Going to Change Its Price or Output,its

question 143

Multiple Choice

If an oligopolist is going to change its price or output,its initial concern is

• A)The response of its competitors.
• B)A change in its cost structure.
• C)The concentration ratio.
• D)The response of the Federal Trade Commission.

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Definitions:

Minimum Required Rate Of Return

This is the lowest return that investors expect for an investment, affecting the value and desirability of an investment opportunity.

Total Fixed Costs

The sum of all costs that do not change with the level of output within a certain range of activity for a specified period.

Average Operating Assets

The average value of the assets used in the normal operations of a business over a period.

Stockholders' Equity

Stockholders' Equity is the portion of a company's assets that belongs to shareholders after all liabilities have been subtracted, also known as shareholders' equity.