The Number of Firms in an Oligopoly Must Be

question 103

Multiple Choice

The number of firms in an oligopoly must be

• A)Four.
• B)Large enough so that firms cannot coordinate.
• C)Small enough so that one firm's decisions have a significant impact on the decisions of the other firms in the industry.
• D)Small enough so that revenues are large enough to support advertising expenditures.

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Definitions:

Compounded Semiannually

Interest calculation method where the interest is added to the principal sum every six months, thereby earning interest on interest.

Promissory Note

A financial instrument in which one party (the maker) promises in writing to pay a determinate sum of money to the other (the payee), either at a fixed or determinable future time or on demand.

Missing Interest Rate

The not specified or unidentified rate of interest in a financial context.

Real Compound Rate of Return

The annual rate of return on an investment, adjusted for inflation, that compounds over time.