For an Oligopoly,a Few Firms Cannot Dominate in the Long

question 64

Multiple Choice

For an oligopoly,a few firms cannot dominate in the long run unless

• A)A cartel is formed.
• B)A firm has a high concentration ratio.
• C)Barriers to entry exist.
• D)The market is contestable.

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Definitions:

Investment

The allocation of resources, usually financial, in the expectation of generating an income or profit, including purchases of financial instruments or capital assets.

Interest Rate

The amount of a loan that is subject to interest charges for the borrower, often shown as a yearly percentage.

Wine Drinkers

Individuals who consume wine, either casually or as enthusiasts, forming a consumer base in the beverage market.

Rational Investor

An individual who makes investment decisions based on logic and available information to maximize returns and minimize risk.